System and method for network address translation integration with IP Security

IP security is provided in a virtual private network using network address translation (NAT) by performing one or a combination of the three types of VPN NAT, including VPN NAT type a outbound source IP NAT, VPN NAT type c inbound source IP NAT, and VPN NAT type d inbound destination IP NAT. This involves dynamically generating NAT rules and associating them with the manual or dynamically generated (IKE) Security Associations, before beginning IP security that uses the Security Associations. Then, as IP Sec is performed on outbound and inbound datagrams, the NAT function is also performed.