A policy processing method and network device. The method includes: performing a mixed orchestration on all service rules corresponding to multiple services, so as to construct multiple condition sets; performing, according to the constructed multiple condition sets, unified condition matching on packet feature information of a received network packet, and outputting a condition matching result set; and calling, a service application to execute a policy action corresponding to each condition identifier in the condition matching result set. In solutions of the embodiments of the present invention, by performing a mixed orchestration on multiple service rules, all service rules are organized in a unified manner, information required by all services is extracted in one packet scanning process, and only one matching and rule verification process is required. Thereby, redundant operations between multiple services are reduced, and device integration and performance are improved.