A system performs peer tunneling for real time communication (“RTC”). The system receives, by a tunneling server, a peer service request message from a first user equipment (“UE”) indicating a request for establishing a peer tunnel between the first UE and a second UE. The system determines whether tunneling service is available at the second UE. When tunneling service is available at the second UE, the system sends a first peer service response message back to the first UE including remote tunnel parameters corresponding to the second UE. When tunneling service is not available at the second UE, the system sends a second peer service response message back to the first UE indicating a failed tunnel creation.