A VPN implementation method and a PE device are provided. The method includes: sending VPN topology information of a local end to a PE device at a peer end, and receiving VPN topology information of the peer end sent by the PE device at the peer end; enabling, according to the VPN topology information of the local end and the VPN topology information of the peer end, the local end and the peer end to select a jointly supported topology; and connecting VPN members by using the jointly supported topology, so as to implement the VPN. A VPN in a multi-topology environment may be implemented, and service quality of a multi-topology VPN may be improved.