The invention provides a UTN network fusion method based on the IP technology. The UTN network fusion method comprises multiple network elements and a UTN network; the network elements belong to the UTN network; the method comprises the following steps: S1, any network element adopts a BGP-LU protocol; S2, all network elements in the UTN network issue label routing of device identifiers (which aregenerally loopback addresses) into the network by adopting the BGP-LU protocol; S3, any network element in the UTN network obtains the label routing of the loopback addresses of the other network elements in the network through a BG-LU protocol; and S4, any network element A and any network element B in the UTN network issue the loopback label routing through the BGP-LU protocol, the network element A obtains the loopback label routing of the network element B based on target service, the network element A and the network element B have the condition of establishing a dynamic PW after the loopback label routing is successfully obtained, and whether to establish the dynamic PW is determined according to the service demand. Flexible mutual communication between different network element devices can be achieved, and the end-to-end PW (Pseudo-Wire) of the network elements is achieved flexibly.