Now - a - days Multi-Protocol label switching (MPLS) is the new WAN (Wide Area Network) technology which is used in routers for long distance communication. In this thesis we compare the performance and convergence time between two same topology, where one is configured with MPLS technology and other one is configured with convectional WAN technology (HDLC). MPLS carries differentiated services across the Internet through a virtual path capability between packet (label) switches. In order to simulate the result we use cisco packet tracer 5.3 and GNS3 0.7 software. Using packet tracer we configure HDLC and using GNS3 we configure MPLS and for this purpose we use cisco c7200 router. After the comparison we found that MPLS has the capabilities to engineer traffic tunnels by avoiding congestion and utilizing all available bandwidth with an efficient manner and it has faster convergence time.