Setting a serial connection between two routers using PPP with CHAP authentication:

Set PC0: IP 192.168.1.2 gateway 192.168.1.1

Set PC1: IP 192.168.2.2 gateway 192.168.2.1

Issue the following commands in Router0:

enable
configure terminal
hostname Router0
no ip domain lookup
line con 0
logging synchronous
interface g0/0
ip address 192.168.1.1 255.255.255.0
no shutdown
interface s0/0/0
ip address 10.1.1.1 255.255.255.0
no shutdown

Then in Router1:

enable
configure terminal
hostname Router1
no ip domain lookup
line con 0
logging synchronous
interface g0/0
ip address 192.168.2.1 255.255.255.0
no shutdown
interface s0/0/0
ip address 10.1.1.2 255.255.255.0
no shutdown

Setting up the routing protocol, in this case, OSPF:

router ospf 1
network 192.168.1.0 0.0.0.255 area 0
network 10.1.1.0 0.0.0.255 area 0
passive-interface G0/0

Note: use the bold number as 1 for Router0 and 2 for Router1.

You should be able to ping from any to any device now.

Let’s set up the encapsulation type as PPP and CHAP authentication.

In Router0

username Router1 password cisco
interface s0/0/0
encapsulation ppp
ppp authentication chap

In Router1

username Router0 password cisco
interface s0/0/0
encapsulation ppp
ppp authentication chap

Note: in Router0 we create one user for Router1, and vice-versa. Replace “cisco” by the desired password.

Check the connectivity and if necessary shut the interface off and on again to speed the process up.

Relevant debugging commands:

debug ppp negotiation
debug ppp packet
debug ppp negotiation
debug ppp packet
debug ppp authentication
undebug all