Bluetooth has recently obtained an unprecedented success in gaining a wide industry support. The main aim of Bluetooth is to eliminate interconnection cables and to connect one device to another via a universal radio link. First generation Bluetooth chipsets are limited in range to approximately 10 m under typical line-of-sight conditions. Future implementations will provide roughly ten times that range. In the present study, a performance assessment, processing delay and throughput of IPSec over Bluetooth based on the Bluetooth Network Encapsulation Protocol (BNEP) operation scenario, is presented. In particular, the performance of the point-to- point link and the effectiveness of IPSec (authentication and encryption) algorithms in Bluetooth. Moreover, some networking issues that may limit Bluetooth applicability in some environments will be pointed out.