A system and method for data flow classification based on a configurable rule-engine, is presented herein. In accordance with an embodiment of the invention, the system includes a data flow managing mechanism configured to identify, track, and manage the data flows and a rule set, which includes a plurality of rules for comparing information contained within data flow with pre-specified values. The system also includes a configurable classification rule engine for classifying the data flows into one of a plurality of traffic classes based on results of the comparisons. The configurable classification rule engine is configured via a configuration file that specifies and allows for the modification and reconfiguration of the pre-specified values and information regarding the data flows, the rule set, and the traffic classes.