A stateful application gateway redundancy system and method. Configuration information defines a service processing unit on a service gateway and associates a first redundancy set and a second redundancy set with the service processing unit, wherein the first and the second redundancy sets include a master redundancy state, a standby redundancy state and one or more redundancy policies, including at least one redundancy policy defining actions to be taken on occurrence of a redundancy event associated with the respective redundancy set. In response to detecting a critical event for the first redundancy set, the service gateway transitions the first redundancy set from the standby redundancy state to the master redundancy state, adds a first signal-route associated with the first redundancy set to a Routing Information Base (RIB) and advertises the first signal-route to routing protocol peer network devices.