diff --git a/lib/dpif-netdev.c b/lib/dpif-netdev.c
index dcf55f3..0d78ae4 100644
--- a/lib/dpif-netdev.c
+++ b/lib/dpif-netdev.c
@@ -85,6 +85,9 @@ VLOG_DEFINE_THIS_MODULE(dpif_netdev);
 #define MAX_RECIRC_DEPTH 5
 DEFINE_STATIC_PER_THREAD_DATA(uint32_t, recirc_depth, 0)
 
+/* Use instant packet send by default. */
+#define DEFAULT_OUTPUT_MAX_LATENCY 0
+
 /* Configuration parameters. */
 enum { MAX_FLOWS = 65536 };     /* Maximum number of flows in flow table. */
 enum { MAX_METERS = 65536 };    /* Maximum number of meters. */
@@ -262,6 +265,9 @@ struct dp_netdev {
     struct hmap ports;
     struct seq *port_seq;       /* Incremented whenever a port changes. */
 
+    /* The time that a packet can wait in output batch for sending. */
+    atomic_uint32_t output_max_latency;
+
     /* Meters. */
     struct ovs_mutex meter_locks[N_METER_LOCKS];
     struct dp_meter *meters[MAX_METERS]; /* Meter bands. */
@@ -502,6 +508,7 @@ struct tx_port {
     int qid;
     long long last_used;
     struct hmap_node node;
+    long long output_time;
     struct dp_packet_batch output_pkts;
 };
 
@@ -574,6 +581,9 @@ struct dp_netdev_pmd_thread {
      * than 'cmap_count(dp->poll_threads)'. */
     uint32_t static_tx_qid;
 
+    /* Number of filled output batches. */
+    int n_output_batches;
+
     struct ovs_mutex port_mutex;    /* Mutex for 'poll_list' and 'tx_ports'. */
     /* List of rx queues to poll. */
     struct hmap poll_list OVS_GUARDED;
@@ -669,9 +679,9 @@ static void dp_netdev_add_rxq_to_pmd(struct dp_netdev_pmd_thread *pmd,
 static void dp_netdev_del_rxq_from_pmd(struct dp_netdev_pmd_thread *pmd,
                                        struct rxq_poll *poll)
     OVS_REQUIRES(pmd->port_mutex);
-static void
+static int
 dp_netdev_pmd_flush_output_packets(struct dp_netdev_pmd_thread *pmd,
-                                   long long now);
+                                   long long now, bool force);
 static void reconfigure_datapath(struct dp_netdev *dp)
     OVS_REQUIRES(dp->port_mutex);
 static bool dp_netdev_pmd_try_ref(struct dp_netdev_pmd_thread *pmd);
@@ -1193,6 +1203,7 @@ create_dp_netdev(const char *name, const struct dpif_class *class,
     conntrack_init(&dp->conntrack);
 
     atomic_init(&dp->emc_insert_min, DEFAULT_EM_FLOW_INSERT_MIN);
+    atomic_init(&dp->output_max_latency, DEFAULT_OUTPUT_MAX_LATENCY);
 
     cmap_init(&dp->poll_threads);
 
@@ -2858,7 +2869,7 @@ dpif_netdev_execute(struct dpif *dpif, struct dpif_execute *execute)
     dp_packet_batch_init_packet(&pp, execute->packet);
     dp_netdev_execute_actions(pmd, &pp, false, execute->flow,
                               execute->actions, execute->actions_len, now);
-    dp_netdev_pmd_flush_output_packets(pmd, now);
+    dp_netdev_pmd_flush_output_packets(pmd, now, true);
 
     if (pmd->core_id == NON_PMD_CORE_ID) {
         ovs_mutex_unlock(&dp->non_pmd_mutex);
@@ -2907,6 +2918,16 @@ dpif_netdev_set_config(struct dpif *dpif, const struct smap *other_config)
         smap_get_ullong(other_config, "emc-insert-inv-prob",
                         DEFAULT_EM_FLOW_INSERT_INV_PROB);
     uint32_t insert_min, cur_min;
+    uint32_t output_max_latency, cur_max_latency;
+
+    output_max_latency = smap_get_int(other_config, "output-max-latency",
+                                      DEFAULT_OUTPUT_MAX_LATENCY);
+    atomic_read_relaxed(&dp->output_max_latency, &cur_max_latency);
+    if (output_max_latency != cur_max_latency) {
+        atomic_store_relaxed(&dp->output_max_latency, output_max_latency);
+        VLOG_INFO("Output maximum latency set to %"PRIu32" ms",
+                  output_max_latency);
+    }
 
     if (!nullable_string_is_equal(dp->pmd_cmask, cmask)) {
         free(dp->pmd_cmask);
@@ -3107,11 +3128,12 @@ cycles_count_intermediate(struct dp_netdev_pmd_thread *pmd,
     non_atomic_ullong_add(&pmd->cycles.n[type], interval);
 }
 
-static void
+static int
 dp_netdev_pmd_flush_output_on_port(struct dp_netdev_pmd_thread *pmd,
                                    struct tx_port *p, long long now)
 {
     int tx_qid;
+    int output_cnt;
     bool dynamic_txqs;
 
     dynamic_txqs = p->port->dynamic_txqs;
@@ -3121,21 +3143,39 @@ dp_netdev_pmd_flush_output_on_port(struct dp_netdev_pmd_thread *pmd,
         tx_qid = pmd->static_tx_qid;
     }
 
+    output_cnt = dp_packet_batch_size(&p->output_pkts);
     netdev_send(p->port->netdev, tx_qid, &p->output_pkts, dynamic_txqs);
     dp_packet_batch_init(&p->output_pkts);
+
+    if (output_cnt) {
+        ovs_assert(pmd->n_output_batches > 0);
+        pmd->n_output_batches--;
+    }
+    return output_cnt;
 }
 
-static void
+static int
 dp_netdev_pmd_flush_output_packets(struct dp_netdev_pmd_thread *pmd,
-                                   long long now)
+                                   long long now, bool force)
 {
     struct tx_port *p;
+    int output_cnt = 0;
+
+    if (!pmd->n_output_batches) {
+        return 0;
+    }
+
+    if (!now) {
+        now = time_msec();
+    }
 
     HMAP_FOR_EACH (p, node, &pmd->send_port_cache) {
-        if (!dp_packet_batch_is_empty(&p->output_pkts)) {
-            dp_netdev_pmd_flush_output_on_port(pmd, p, now);
+        if (!dp_packet_batch_is_empty(&p->output_pkts)
+            && (force || p->output_time <= now)) {
+            output_cnt += dp_netdev_pmd_flush_output_on_port(pmd, p, now);
         }
     }
+    return output_cnt;
 }
 
 static int
@@ -3145,7 +3185,7 @@ dp_netdev_process_rxq_port(struct dp_netdev_pmd_thread *pmd,
 {
     struct dp_packet_batch batch;
     int error;
-    int batch_cnt = 0;
+    int batch_cnt = 0, output_cnt = 0;
 
     dp_packet_batch_init(&batch);
     error = netdev_rxq_recv(rx, &batch);
@@ -3156,7 +3196,7 @@ dp_netdev_process_rxq_port(struct dp_netdev_pmd_thread *pmd,
 
         batch_cnt = batch.count;
         dp_netdev_input(pmd, &batch, port_no, now);
-        dp_netdev_pmd_flush_output_packets(pmd, now);
+        output_cnt = dp_netdev_pmd_flush_output_packets(pmd, now, false);
     } else if (error != EAGAIN && error != EOPNOTSUPP) {
         static struct vlog_rate_limit rl = VLOG_RATE_LIMIT_INIT(1, 5);
 
@@ -3164,7 +3204,7 @@ dp_netdev_process_rxq_port(struct dp_netdev_pmd_thread *pmd,
                     netdev_rxq_get_name(rx), ovs_strerror(error));
     }
 
-    return batch_cnt;
+    return batch_cnt + output_cnt;
 }
 
 static struct tx_port *
@@ -3691,7 +3731,8 @@ dpif_netdev_run(struct dpif *dpif)
     struct dp_netdev *dp = get_dp_netdev(dpif);
     struct dp_netdev_pmd_thread *non_pmd;
     uint64_t new_tnl_seq;
-    int process_packets = 0;
+    int process_packets;
+    bool need_to_flush = true;
 
     ovs_mutex_lock(&dp->port_mutex);
     non_pmd = dp_netdev_get_pmd(dp, NON_PMD_CORE_ID);
@@ -3707,12 +3748,25 @@ dpif_netdev_run(struct dpif *dpif)
                         dp_netdev_process_rxq_port(non_pmd,
                                                    port->rxqs[i].rx,
                                                    port->port_no);
-                    cycles_count_intermediate(non_pmd, process_packets ?
-                                                       PMD_CYCLES_PROCESSING
-                                                     : PMD_CYCLES_IDLE);
+                    cycles_count_intermediate(non_pmd, process_packets
+                                                       ? PMD_CYCLES_PROCESSING
+                                                       : PMD_CYCLES_IDLE);
+                    if (process_packets) {
+                        need_to_flush = false;
+                    }
                 }
             }
         }
+        if (need_to_flush) {
+            /* We didn't receive anything in the process loop.
+             * Check if we need to send something. */
+            process_packets = dp_netdev_pmd_flush_output_packets(non_pmd,
+                                                                 0, false);
+            cycles_count_intermediate(non_pmd, process_packets
+                                               ? PMD_CYCLES_PROCESSING
+                                               : PMD_CYCLES_IDLE);
+        }
+
         cycles_count_end(non_pmd, PMD_CYCLES_IDLE);
         dpif_netdev_xps_revalidate_pmd(non_pmd, time_msec(), false);
         ovs_mutex_unlock(&dp->non_pmd_mutex);
@@ -3764,6 +3818,8 @@ pmd_free_cached_ports(struct dp_netdev_pmd_thread *pmd)
 {
     struct tx_port *tx_port_cached;
 
+    /* Flush all the queued packets. */
+    dp_netdev_pmd_flush_output_packets(pmd, 0, true);
     /* Free all used tx queue ids. */
     dpif_netdev_xps_revalidate_pmd(pmd, 0, true);
 
@@ -3860,7 +3916,6 @@ pmd_thread_main(void *f_)
     bool exiting;
     int poll_cnt;
     int i;
-    int process_packets = 0;
 
     poll_list = NULL;
 
@@ -3890,6 +3945,9 @@ reload:
 
     cycles_count_start(pmd);
     for (;;) {
+        int process_packets;
+        bool need_to_flush = true;
+
         for (i = 0; i < poll_cnt; i++) {
             process_packets =
                 dp_netdev_process_rxq_port(pmd, poll_list[i].rx,
@@ -3897,6 +3955,19 @@ reload:
             cycles_count_intermediate(pmd,
                                       process_packets ? PMD_CYCLES_PROCESSING
                                                       : PMD_CYCLES_IDLE);
+            if (process_packets) {
+                need_to_flush = false;
+            }
+        }
+
+        if (need_to_flush) {
+            /* We didn't receive anything in the process loop.
+             * Check if we need to send something. */
+            process_packets = dp_netdev_pmd_flush_output_packets(pmd,
+                                                                 0, false);
+            cycles_count_intermediate(pmd,
+                                      process_packets ? PMD_CYCLES_PROCESSING
+                                                      : PMD_CYCLES_IDLE);
         }
 
         if (lc++ > 1024) {
@@ -4336,6 +4407,7 @@ dp_netdev_configure_pmd(struct dp_netdev_pmd_thread *pmd, struct dp_netdev *dp,
     pmd->core_id = core_id;
     pmd->numa_id = numa_id;
     pmd->need_reload = false;
+    pmd->n_output_batches = 0;
 
     ovs_refcount_init(&pmd->ref_cnt);
     latch_init(&pmd->exit_latch);
@@ -4521,6 +4593,7 @@ dp_netdev_add_port_tx_to_pmd(struct dp_netdev_pmd_thread *pmd,
 
     tx->port = port;
     tx->qid = -1;
+    tx->output_time = 0LL;
     dp_packet_batch_init(&tx->output_pkts);
 
     hmap_insert(&pmd->tx_ports, &tx->node, hash_port_no(tx->port->port_no));
@@ -5197,14 +5270,20 @@ dp_execute_cb(void *aux_, struct dp_packet_batch *packets_,
                 dp_netdev_pmd_flush_output_on_port(pmd, p, now);
             }
 #endif
-
-            if (OVS_UNLIKELY(dp_packet_batch_size(&p->output_pkts)
-                       + dp_packet_batch_size(packets_) > NETDEV_MAX_BURST)) {
-                /* Some packets was generated while input batch processing.
-                 * Flush here to avoid overflow. */
+            if (dp_packet_batch_size(&p->output_pkts)
+                + dp_packet_batch_size(packets_) > NETDEV_MAX_BURST) {
+                /* Flush here to avoid overflow. */
                 dp_netdev_pmd_flush_output_on_port(pmd, p, now);
             }
 
+            if (dp_packet_batch_is_empty(&p->output_pkts)) {
+                uint32_t cur_max_latency;
+
+                atomic_read_relaxed(&dp->output_max_latency, &cur_max_latency);
+                p->output_time = now + cur_max_latency;
+                pmd->n_output_batches++;
+            }
+
             DP_PACKET_BATCH_FOR_EACH (packet, packets_) {
                 dp_packet_batch_add(&p->output_pkts, packet);
             }
diff --git a/vswitchd/vswitch.xml b/vswitchd/vswitch.xml
index 074535b..23930f0 100644
--- a/vswitchd/vswitch.xml
+++ b/vswitchd/vswitch.xml
@@ -344,6 +344,21 @@
         </p>
       </column>
 
+      <column name="other_config" key="output-max-latency"
+              type='{"type": "integer", "minInteger": 0, "maxInteger": 1000}'>
+        <p>
+          Specifies the time in milliseconds that a packet can wait in output
+          batch for sending i.e. amount of time that packet can spend in an
+          intermediate output queue before sending to netdev.
+          This option can be used to configure balance between throughput
+          and latency. Lower values decreases latency while higher values
+          may be useful to achieve higher performance.
+        </p>
+        <p>
+          Defaults to 0 i.e. instant packet sending (latency optimized).
+        </p>
+      </column>
+
       <column name="other_config" key="n-handler-threads"
               type='{"type": "integer", "minInteger": 1}'>
         <p>
