nt/d/1uM1c3zzoehiijh1ZpZuJ1-SzuVVupenv8r5yuCaFshs/edit#heading=h.dwbqvwmg6ud3))

When a ztunnel receives traffic (authenticated or not) from a workload, it will forward that traffic to the Waypoint proxy **after** applying any `TRANSPORT` layer policies (i.e. `Authorization`s). Thus, if the destination workload has at least the equivalent of a `STRICT` `PeerAuthentication`, unauthenticated traffic will be rejected before it reaches the Waypoint proxy. If the effective policy is `PERMISSIVE`...