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As the title says, my firewall (Sonicwall) can do either IPSEC or L2TP/IPSEC for VPN connections. One advantage of L2TP/IPSEC I can see is that the client computer get allocated its own IP address on the LAN.

Are there any other advantages?

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L2TP/IPSEC wraps a simulated data link layer in IPSEC. Plain IPSEC just encrypts the network layer. If you want hosts to think they're on the same LAN, use L2TP/IPSEC; if you'd rather skip the extra bandwidth and processing overhead, use IPSEC.

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  • What about tunnel and/or transport mode with IPsec. And hey ESP also. I really don't understand why L2TP is required?
    – Ajay
    Dec 19, 2015 at 14:58

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