A Virtual Private Network (VPN) is a private network that uses a public network such as the internet or MultiProtocol Label Switching (MPLS) network to connect remote sites of same or different organizations/networks together. VPN provides similar level of privacy, security, quality of service and manageability that privately owned network provides. This paper presents the comparative analysis of VPN provisioning algorithm, Modified Tree Routing Algorithm (MTRA), on traditional IP based VPN and MPLS technology based VPNs. MPLS based method of packet forwarding has many advantages over IP layer forwarding. Packets with the same destination arriving on different ports of the router can be assigned to different Forwarding Equivalence Classes (FEC).