diff --git a/ovn/northd/ovn-northd.c b/ovn/northd/ovn-northd.c
index 3569ea2..279840c 100644
--- a/ovn/northd/ovn-northd.c
+++ b/ovn/northd/ovn-northd.c
@@ -86,6 +86,12 @@ enum ovn_datapath_type {
     DP_ROUTER                   /* OVN logical router. */
 };
 
+/* Network type of a datapath */
+typedef enum ovn_datapath_nw_type {
+   DP_NETWORK_OVERLAY,
+   DP_NETWORK_VLAN
+} ovn_datapath_nw_type;
+
 /* Returns an "enum ovn_stage" built from the arguments.
  *
  * (It's better to use ovn_stage_build() for type-safety reasons, but inline
@@ -438,6 +444,8 @@ struct ovn_datapath {
 
     bool has_unknown;
 
+    ovn_datapath_nw_type network_type;
+
     /* IPAM data. */
     struct ipam_info ipam_info;
 
@@ -469,6 +477,30 @@ cleanup_macam(struct hmap *macam_)
     }
 }
 
+static void
+ovn_datapath_update_nw_type(struct ovn_datapath *od)
+{
+      if (!od->nbs) {
+         return;
+      }
+
+      if (!strcmp(od->nbs->network_type, "overlay") ||
+          !strlen(od->nbs->network_type)) {
+
+         // No value in network_type is taken as OVERLAY.
+         od->network_type = DP_NETWORK_OVERLAY;
+
+      } else if (!strcmp(od->nbs->network_type, "vlan")) {
+         od->network_type = DP_NETWORK_VLAN;
+
+      } else {
+         static struct vlog_rate_limit rl = VLOG_RATE_LIMIT_INIT(5, 1);
+         VLOG_WARN_RL(&rl, "bad network type %s, for %s",
+                      od->nbs->network_type, od->nbs->name);
+      }
+
+}
+
 static struct ovn_datapath *
 ovn_datapath_create(struct hmap *datapaths, const struct uuid *key,
                     const struct nbrec_logical_switch *nbs,
@@ -659,6 +691,12 @@ ovn_datapath_update_external_ids(struct ovn_datapath *od)
     if (name2 && name2[0]) {
         smap_add(&ids, "name2", name2);
     }
+
+    if (od->nbs) {
+       smap_add(&ids, "network-type", strlen(od->nbs->network_type) ?
+                od->nbs->network_type : "overlay");
+    }
+
     sbrec_datapath_binding_set_external_ids(od->sb, &ids);
     smap_destroy(&ids);
 }
@@ -712,9 +750,11 @@ join_datapaths(struct northd_context *ctx, struct hmap *datapaths,
             ovs_list_remove(&od->list);
             ovs_list_push_back(both, &od->list);
             ovn_datapath_update_external_ids(od);
+            ovn_datapath_update_nw_type(od);
         } else {
             od = ovn_datapath_create(datapaths, &nbs->header_.uuid,
                                      nbs, NULL, NULL);
+            ovn_datapath_update_nw_type(od);
             ovs_list_push_back(nb_only, &od->list);
         }
 
diff --git a/ovn/ovn-sb.xml b/ovn/ovn-sb.xml
index 8ffef40..01ef892 100644
--- a/ovn/ovn-sb.xml
+++ b/ovn/ovn-sb.xml
@@ -2090,6 +2090,13 @@ tcp.flags = RST;
         the <ref db="OVN_Northbound"/> database.
       </column>
 
+      <column name="external_ids" key="logical-switch-type">
+        For a logical datapath that represents a logical switch,
+        <code>ovn-northd</code> stores in this key the network type from
+        corresponding <ref table="Logical_Switch" db="OVN_Northbound"/> row in
+        the <ref db="OVN_Northbound"/> database.
+      </column>
+
       <group title="Naming">
         <p>
           <code>ovn-northd</code> copies these from the name fields in the <ref
diff --git a/tests/ovn-northd.at b/tests/ovn-northd.at
index 1878eb2..818109f 100644
--- a/tests/ovn-northd.at
+++ b/tests/ovn-northd.at
@@ -301,3 +301,25 @@ as northd
 OVS_APP_EXIT_AND_WAIT([ovn-northd])
 
 AT_CLEANUP
+
+AT_SETUP([ovn -- check logical switch type propagation from NBDB to SBDB])
+AT_SKIP_IF([test $HAVE_PYTHON = no])
+ovn_start
+
+ovn-nbctl ls-add ls0
+
+uuid=`ovn-sbctl --bare --columns=_uuid list Datapath`
+echo "LS UUID is: " $uuid
+
+type=`ovn-sbctl get Datapath_Binding ${uuid} external_ids:network-type`
+echo "LS TYPE is: " $type
+AT_CHECK([ovn-sbctl get Datapath_Binding ${uuid} external_ids:network-type], [0], [overlay
+])
+
+ovn-nbctl ls-set-network-type ls0 vlan
+type=`ovn-sbctl get Datapath_Binding ${uuid} external_ids:network-type`
+echo "LS TYPE is: " $type
+AT_CHECK([ovn-sbctl get Datapath_Binding ${uuid} external_ids:network-type], [0], [vlan
+])
+
+AT_CLEANUP
