In a VXLAN configuration method, a first network device obtains configuration information, generates first GRASP information based on the configuration information, and sends the first GRASP information to a second network device, where the configuration information includes VTEP device information, a plurality of pieces of VTEP device information are respectively used to indicate a plurality of VTEPs included in a VXLAN, the first GRASP information includes objective information, and the objective information is used to carry the configuration information. The second network device receives the first GRASP information and establishes a VXLAN tunnel based on the first GRASP information. In this way, automatic VXLAN configuration is implemented.