diff --git a/ovn/controller/physical.c b/ovn/controller/physical.c
index f269a1d..1f41f59 100644
--- a/ovn/controller/physical.c
+++ b/ovn/controller/physical.c
@@ -190,7 +190,9 @@ get_zone_ids(const struct sbrec_port_binding *binding,
 static void
 put_local_common_flows(uint32_t dp_key, uint32_t port_key,
                        bool nested_container, const struct zone_ids *zone_ids,
-                       struct ofpbuf *ofpacts_p, struct hmap *flow_table)
+                       struct ofpbuf *ofpacts_p, struct hmap *flow_table,
+                       struct local_datapath *ld,
+                       const struct hmap *local_datapaths)
 {
     struct match match;
 
@@ -221,11 +223,63 @@ put_local_common_flows(uint32_t dp_key, uint32_t port_key,
         }
     }
 
+    struct ofpbuf *clone = NULL;
+    clone = ofpbuf_clone(ofpacts_p);
+
     /* Resubmit to table 34. */
     put_resubmit(OFTABLE_CHECK_LOOPBACK, ofpacts_p);
     ofctrl_add_flow(flow_table, OFTABLE_LOCAL_OUTPUT, 100, 0,
                     &match, ofpacts_p);
 
+    /* For a reply packet from gateway with VLAN switch port as destination
+     * (excluding localnet_port and external VLAN networks), gateway router
+     * will use gateway MAC address as source MAC instead of router internal
+     * port MAC, so that external switches can learn gateway MAC address.
+     * Here (before packet is given to the port) we replace router gateway
+     * MAC address with router internal port MAC. */
+    if (ld->localnet_port && (port_key != ld->localnet_port->tunnel_key)) {
+        for (int i = 0; i < ld->n_peer_dps; i++) {
+            struct local_datapath *peer_ldp = get_local_datapath(
+                local_datapaths, ld->peer_dps[i]->peer_dp->tunnel_key);
+            const struct sbrec_port_binding *crp;
+            crp = peer_ldp->chassisredirect_port;
+            if (!crp) {
+                continue;
+            }
+
+            if (strcmp(smap_get(&crp->options, "distributed-port"),
+                       ld->peer_dps[i]->peer->logical_port) &&
+                (port_key != ld->peer_dps[i]->patch->tunnel_key)) {
+                for (int j = 0; j < crp->n_mac; j++) {
+                    struct lport_addresses laddrs;
+                    if (!extract_lsp_addresses(crp->mac[j], &laddrs)) {
+                        continue;
+                    }
+                    match_set_dl_src(&match, laddrs.ea);
+                    destroy_lport_addresses(&laddrs);
+                    break;
+                }
+                for (int j = 0; j < ld->peer_dps[i]->peer->n_mac; j++) {
+                    struct lport_addresses laddrs;
+                    uint64_t mac64;
+                    if (!extract_lsp_addresses(
+                        ld->peer_dps[i]->peer->mac[j], &laddrs)) {
+                        continue;
+                    }
+                    mac64 = eth_addr_to_uint64(laddrs.ea);
+                    put_load(mac64,
+                             MFF_ETH_SRC, 0, 48, clone);
+                    destroy_lport_addresses(&laddrs);
+                    break;
+                }
+                put_resubmit(OFTABLE_CHECK_LOOPBACK, clone);
+                ofctrl_add_flow(flow_table, OFTABLE_LOCAL_OUTPUT, 150, 0,
+                    &match, clone);
+            }
+        }
+    }
+    ofpbuf_delete(clone);
+
     /* Table 34, Priority 100.
      * =======================
      *
@@ -330,7 +384,7 @@ consider_port_binding(struct ovsdb_idl_index *sbrec_chassis_by_name,
 
         struct zone_ids binding_zones = get_zone_ids(binding, ct_zones);
         put_local_common_flows(dp_key, port_key, false, &binding_zones,
-                               ofpacts_p, flow_table);
+                               ofpacts_p, flow_table, ld, local_datapaths);
 
         match_init_catchall(&match);
         ofpbuf_clear(ofpacts_p);
@@ -531,7 +585,7 @@ consider_port_binding(struct ovsdb_idl_index *sbrec_chassis_by_name,
 
         struct zone_ids zone_ids = get_zone_ids(binding, ct_zones);
         put_local_common_flows(dp_key, port_key, nested_container, &zone_ids,
-                               ofpacts_p, flow_table);
+                               ofpacts_p, flow_table, ld, local_datapaths);
 
         /* Table 0, Priority 200, 150 and 100.
          * ==============================
diff --git a/ovn/northd/ovn-northd.8.xml b/ovn/northd/ovn-northd.8.xml
index 8fa5272..876c121 100644
--- a/ovn/northd/ovn-northd.8.xml
+++ b/ovn/northd/ovn-northd.8.xml
@@ -2013,6 +2013,16 @@ next;
       </li>
 
       <li>
+        A priority-100 logical flow with match
+        <code>inport == <var>GW</var> &amp;&amp;
+        flags.rcv_from_vlan == 1</code> has actions
+        <code>eth.dst = <var>E</var>; next;</code>, where
+        <var>GW</var> is the logical router distributed gateway
+        port and <var>E</var> is the MAC address of router
+        distributed gateway port.
+      </li>
+
+      <li>
         For each NAT rule in the OVN Northbound database that can
         be handled in a distributed manner, a priority-100 logical
         flow with match <code>ip4.src == <var>B</var> &amp;&amp;
diff --git a/ovn/northd/ovn-northd.c b/ovn/northd/ovn-northd.c
index bcf0b66..d012bb8 100644
--- a/ovn/northd/ovn-northd.c
+++ b/ovn/northd/ovn-northd.c
@@ -4419,6 +4419,15 @@ add_route(struct hmap *lflows, const struct ovn_port *op,
     } else {
         ds_put_format(&actions, "ip%s.dst", is_ipv4 ? "4" : "6");
     }
+
+    if (op->peer && op->peer->od->localnet_port &&
+        op->od->l3dgw_port && op->od->l3redirect_port &&
+        (op != op->od->l3redirect_port) &&
+        (op != op->od->l3dgw_port)) {
+        ds_put_format(&match, " && is_chassis_resident(%s)",
+                      op->od->l3redirect_port->json_key);
+        ds_put_format(&actions, "; flags.rcv_from_vlan = 1");
+    }
     ds_put_format(&actions, "; "
                   "%sreg1 = %s; "
                   "eth.src = %s; "
@@ -6131,6 +6140,26 @@ build_lrouter_flows(struct hmap *datapaths, struct hmap *ports,
                       op->lrp_networks.ipv6_addrs[i].network_s,
                       op->lrp_networks.ipv6_addrs[i].plen, NULL, NULL);
         }
+
+        /* For a reply packet from gateway with VLAN switch port as
+         * destination, replace router internal port MAC with router gateway
+         * MAC address, so that external switches can learn gateway MAC
+         * address. Later before delivering the packet to the port,
+         * controller will replace the gateway MAC with router internal port
+         * MAC in table 33. */
+        if (op->od->l3dgw_port && (op == op->od->l3dgw_port) &&
+            op->od->l3redirect_port) {
+            ds_clear(&actions);
+            ds_clear(&match);
+            ds_put_format(&match, "inport == %s", op->json_key);
+            ds_put_format(&match, " && flags.rcv_from_vlan == 1");
+            ds_put_format(&match, " && is_chassis_resident(%s)",
+                          op->od->l3redirect_port->json_key);
+            ds_put_format(&actions,
+                          "eth.src = %s; next;", op->lrp_networks.ea_s);
+            ovn_lflow_add(lflows, op->od, S_ROUTER_IN_GW_REDIRECT, 100,
+                          ds_cstr(&match), ds_cstr(&actions));
+        }
     }
 
     /* Convert the static routes to flows. */
diff --git a/ovn/ovn-architecture.7.xml b/ovn/ovn-architecture.7.xml
index ad2101c..0de41d2 100644
--- a/ovn/ovn-architecture.7.xml
+++ b/ovn/ovn-architecture.7.xml
@@ -1067,7 +1067,9 @@
 
       <p>
         Flows in table 33 resemble those in table 32 but for logical ports that
-        reside locally rather than remotely.  For unicast logical output ports
+        reside locally rather than remotely.  If these are VLAN ports and
+        packet has router gateway port MAC address as source, replace it with
+        router internal port MAC address. For unicast logical output ports
         on the local hypervisor, the actions just resubmit to table 34.  For
         multicast output ports that include one or more logical ports on the
         local hypervisor, for each such logical port <var>P</var>, the actions
