Various embodiments are described herein to enable physical topology independent dynamic insertion of a service device into a network. One embodiment provides for a network system comprising a set of network elements to interconnect a set of host devices, the set of network elements having a physical topology defined by the physical links between network elements in the set of network elements and a logical topology defined by a flow of network data between a network service device and a client of the network service device, wherein the physical topology differs from the logical topology, and a network management device including a service policy module to monitor a service policy of the network service device and automatically configure the logical topology of the network elements based on a change in the service policy.