diff --git a/changelogs/fragments/63901-fix-ios-interfaces-for-non-existing-virtual-interfaces.yaml b/changelogs/fragments/63901-fix-ios-interfaces-for-non-existing-virtual-interfaces.yaml
new file mode 100644
index 00000000000..d11c7352d0a
--- /dev/null
+++ b/changelogs/fragments/63901-fix-ios-interfaces-for-non-existing-virtual-interfaces.yaml
@@ -0,0 +1,4 @@
+---
+bugfixes:
+- "To fix ios_interfaces where non-existing virtual/loopback interfaces was not getting configured"
+- "(https://github.com/ansible/ansible/pull/63901)"
diff --git a/lib/ansible/module_utils/network/ios/config/interfaces/interfaces.py b/lib/ansible/module_utils/network/ios/config/interfaces/interfaces.py
index c5818104c54..59ac20c2d53 100644
--- a/lib/ansible/module_utils/network/ios/config/interfaces/interfaces.py
+++ b/lib/ansible/module_utils/network/ios/config/interfaces/interfaces.py
@@ -140,10 +140,11 @@ class Interfaces(ConfigBase):
                 elif interface['name'] in each['name']:
                     break
             else:
+                # configuring non-existing interface
+                commands.extend(self._set_config(interface, dict()))
                 continue
             have_dict = filter_dict_having_none_value(interface, each)
-            want = dict()
-            commands.extend(self._clear_config(want, have_dict))
+            commands.extend(self._clear_config(dict(), have_dict))
             commands.extend(self._set_config(interface, each))
         # Remove the duplicate interface call
         commands = remove_duplicate_interface(commands)
@@ -163,10 +164,12 @@ class Interfaces(ConfigBase):
 
         for each in have:
             for interface in want:
+                count = 0
                 if each['name'] == interface['name']:
                     break
                 elif interface['name'] in each['name']:
                     break
+                count += 1
             else:
                 # We didn't find a matching desired state, which means we can
                 # pretend we recieved an empty desired state.
@@ -174,9 +177,17 @@ class Interfaces(ConfigBase):
                 commands.extend(self._clear_config(interface, each))
                 continue
             have_dict = filter_dict_having_none_value(interface, each)
-            want = dict()
-            commands.extend(self._clear_config(want, have_dict))
+            commands.extend(self._clear_config(dict(), have_dict))
             commands.extend(self._set_config(interface, each))
+            # as the pre-existing interface are now configured by
+            # above set_config call, deleting the respective
+            # interface entry from the want list
+            del want[count]
+
+        # Iterating through want list which now only have new interfaces to be
+        # configured
+        for each in want:
+            commands.extend(self._set_config(each, dict()))
         # Remove the duplicate interface call
         commands = remove_duplicate_interface(commands)
 
@@ -198,6 +209,8 @@ class Interfaces(ConfigBase):
                 if each['name'] == interface['name']:
                     break
             else:
+                # configuring non-existing interface
+                commands.extend(self._set_config(interface, dict()))
                 continue
             commands.extend(self._set_config(interface, each))