diff --git a/ovn/controller/bfd.c b/ovn/controller/bfd.c
index 8f020d5..cbbd3ba 100644
--- a/ovn/controller/bfd.c
+++ b/ovn/controller/bfd.c
@@ -139,8 +139,9 @@ bfd_travel_gw_related_chassis(struct local_datapath *dp,
                                   struct local_datapath_node, node);
         dp = dp_binding->dp;
         free(dp_binding);
+        const struct sbrec_datapath_binding *pdp;
         for (size_t i = 0; i < dp->n_peer_dps; i++) {
-            const struct sbrec_datapath_binding *pdp = dp->peer_dps[i];
+            pdp = dp->peer_dps[i]->peer_dp;
             if (!pdp) {
                 continue;
             }
diff --git a/ovn/controller/binding.c b/ovn/controller/binding.c
index 0785a94..f02bde5 100644
--- a/ovn/controller/binding.c
+++ b/ovn/controller/binding.c
@@ -148,10 +148,14 @@ add_local_datapath__(struct controller_ctx *ctx,
                                 "lport-by-datapath", &cursor);
 
     SBREC_PORT_BINDING_FOR_EACH_EQUAL (pb, &cursor, lpval) {
+        if (!strcmp(pb->type, "chassisredirect")) {
+            ld->chassisredirect_port = pb;
+        }
         if (!strcmp(pb->type, "patch")) {
             const char *peer_name = smap_get(&pb->options, "peer");
             if (peer_name) {
                 const struct sbrec_port_binding *peer;
+                struct peer_datapath *pdp;
 
                 peer = lport_lookup_by_name( ctx->ovnsb_idl, peer_name);
 
@@ -162,8 +166,12 @@ add_local_datapath__(struct controller_ctx *ctx,
                     ld->peer_dps = xrealloc(
                             ld->peer_dps,
                             ld->n_peer_dps * sizeof *ld->peer_dps);
-                    ld->peer_dps[ld->n_peer_dps - 1] = datapath_lookup_by_key(
+                    pdp = xcalloc(1, sizeof(struct peer_datapath));
+                    pdp->peer_dp = datapath_lookup_by_key(
                         ctx->ovnsb_idl, peer->datapath->tunnel_key);
+                    pdp->patch = pb;
+                    pdp->peer = peer;
+                    ld->peer_dps[ld->n_peer_dps - 1] = pdp;
                 }
             }
         }
diff --git a/ovn/controller/ovn-controller.c b/ovn/controller/ovn-controller.c
index 86e1836..55573fd 100644
--- a/ovn/controller/ovn-controller.c
+++ b/ovn/controller/ovn-controller.c
@@ -803,6 +803,9 @@ main(int argc, char *argv[])
 
         struct local_datapath *cur_node, *next_node;
         HMAP_FOR_EACH_SAFE (cur_node, next_node, hmap_node, &local_datapaths) {
+            for (int i = 0; i < cur_node->n_peer_dps; i++) {
+                free(cur_node->peer_dps[i]);
+            }
             free(cur_node->peer_dps);
             hmap_remove(&local_datapaths, &cur_node->hmap_node);
             free(cur_node);
diff --git a/ovn/controller/ovn-controller.h b/ovn/controller/ovn-controller.h
index 6617b0c..8023de2 100644
--- a/ovn/controller/ovn-controller.h
+++ b/ovn/controller/ovn-controller.h
@@ -46,6 +46,17 @@ struct ct_zone_pending_entry {
     enum ct_zone_pending_state state;
 };
 
+/* Represents a peer datapath connected to a given datapath */
+struct peer_datapath {
+    const struct sbrec_datapath_binding *peer_dp;
+
+    /* Patch port connected to local datapath */
+    const struct sbrec_port_binding *patch;
+
+    /* Peer patch port connected to peer datapath */
+    const struct sbrec_port_binding *peer;
+};
+
 /* A logical datapath that has some relevance to this hypervisor.  A logical
  * datapath D is relevant to hypervisor H if:
  *
@@ -63,10 +74,13 @@ struct local_datapath {
     /* The localnet port in this datapath, if any (at most one is allowed). */
     const struct sbrec_port_binding *localnet_port;
 
+    /* The chassisredirect port in this datapath */
+    const struct sbrec_port_binding *chassisredirect_port;
+
     /* True if this datapath contains an l3gateway port located on this
      * hypervisor. */
     bool has_local_l3gateway;
-    const struct sbrec_datapath_binding **peer_dps;
+    struct peer_datapath **peer_dps;
     size_t n_peer_dps;
 };
 
diff --git a/ovn/controller/physical.c b/ovn/controller/physical.c
index fc8adcf..ad57f69 100644
--- a/ovn/controller/physical.c
+++ b/ovn/controller/physical.c
@@ -304,7 +304,8 @@ consider_port_binding(struct controller_ctx *ctx,
 {
     uint32_t dp_key = binding->datapath->tunnel_key;
     uint32_t port_key = binding->tunnel_key;
-    if (!get_local_datapath(local_datapaths, dp_key)) {
+    struct local_datapath *ld = get_local_datapath(local_datapaths, dp_key);
+    if (!ld) {
         return;
     }
 
@@ -350,6 +351,14 @@ consider_port_binding(struct controller_ctx *ctx,
             put_load(0, MFF_LOG_REG0 + i, 0, 32, ofpacts_p);
         }
         put_load(0, MFF_IN_PORT, 0, 16, ofpacts_p);
+        if (ld->localnet_port) {
+            int vlan_tag = (ld->localnet_port->n_tag ?
+                            *ld->localnet_port->tag : 0);
+            if (vlan_tag) {
+                put_load(1, MFF_LOG_FLAGS, MLF_RCV_FROM_VLAN_BIT, 1,
+                         ofpacts_p);
+            }
+        }
         put_resubmit(OFTABLE_LOG_INGRESS_PIPELINE, ofpacts_p);
         clone = ofpbuf_at_assert(ofpacts_p, clone_ofs, sizeof *clone);
         ofpacts_p->header = clone;
@@ -539,6 +548,47 @@ consider_port_binding(struct controller_ctx *ctx,
          * input port, MFF_LOG_DATAPATH to the logical datapath, and
          * resubmit into the logical ingress pipeline starting at table
          * 16. */
+
+        /* Match a VLAN tag and strip it. If the vlan network is connected
+         * to a router which has a gateway port on redirect-chassis,
+         * set MLF_RCV_FROM_VLAN flag, router metadata and input port to
+         * connecting patch port */
+        int vlan_tag = binding->n_tag ? *binding->tag : 0;
+        if (!strcmp(binding->type, "localnet") && vlan_tag) {
+            struct local_datapath *ldp = get_local_datapath(
+                local_datapaths, binding->datapath->tunnel_key);
+            for (int i = 0; i < ldp->n_peer_dps; i++) {
+                struct local_datapath *peer_ldp = get_local_datapath(
+                    local_datapaths, ldp->peer_dps[i]->peer_dp->tunnel_key);
+                const struct sbrec_port_binding *crp;
+                crp = peer_ldp->chassisredirect_port;
+                if (crp && crp->chassis &&
+                   !strcmp(crp->chassis->name, chassis->name)) {
+                    const char *gwp = smap_get(&crp->options,
+                                               "distributed-port");
+                    if (strcmp(gwp, ldp->peer_dps[i]->peer->logical_port)) {
+                        ofpbuf_clear(ofpacts_p);
+                        match_init_catchall(&match);
+
+                        match_set_in_port(&match, ofport);
+                        match_set_dl_vlan(&match, htons(vlan_tag));
+
+                        ofpact_put_STRIP_VLAN(ofpacts_p);
+                        put_load(peer_ldp->datapath->tunnel_key,
+                                 MFF_LOG_DATAPATH, 0, 64, ofpacts_p);
+                        put_load(ldp->peer_dps[i]->peer->tunnel_key,
+                                 MFF_LOG_INPORT, 0, 32, ofpacts_p);
+                        put_load(1, MFF_LOG_FLAGS,
+                                 MLF_RCV_FROM_VLAN_BIT, 1, ofpacts_p);
+                        put_resubmit(OFTABLE_LOG_INGRESS_PIPELINE, ofpacts_p);
+
+                        ofctrl_add_flow(flow_table, OFTABLE_PHY_TO_LOG,
+                                        150, 0, &match, ofpacts_p);
+                    }
+                }
+            }
+        }
+
         ofpbuf_clear(ofpacts_p);
         match_init_catchall(&match);
         match_set_in_port(&match, ofport);
@@ -639,6 +689,48 @@ consider_port_binding(struct controller_ctx *ctx,
          * flow matches an output port that includes a logical port on a remote
          * hypervisor, and tunnels the packet to that hypervisor.
          */
+
+        /* For each vlan network connected to the router, add that network's
+         * vlan tag to the packet and output it through localnet port */
+        struct local_datapath *ldp = get_local_datapath(local_datapaths,
+                                                        dp_key);
+        for (int i = 0; i < ldp->n_peer_dps; i++) {
+            struct ofpact_vlan_vid *vlan_vid;
+            ofp_port_t port_ofport = 0;
+            struct peer_datapath *pdp = ldp->peer_dps[i];
+            struct local_datapath *peer_ldp = get_local_datapath(
+                local_datapaths, pdp->peer_dp->tunnel_key);
+            if (peer_ldp->localnet_port && pdp->patch->tunnel_key) {
+                int64_t vlan_tag = (peer_ldp->localnet_port->n_tag ?
+                                    *peer_ldp->localnet_port->tag : 0);
+                if (!vlan_tag) {
+                    continue;
+                }
+                port_ofport = u16_to_ofp(simap_get(&localvif_to_ofport,
+                    peer_ldp->localnet_port->logical_port));
+                if (!port_ofport) {
+                    continue;
+                }
+
+                match_init_catchall(&match);
+                ofpbuf_clear(ofpacts_p);
+
+                match_set_metadata(&match, htonll(dp_key));
+                match_set_reg(&match, MFF_LOG_INPORT - MFF_REG0,
+                              pdp->patch->tunnel_key);
+                match_set_reg(&match, MFF_LOG_OUTPORT - MFF_REG0, port_key);
+
+                vlan_vid = ofpact_put_SET_VLAN_VID(ofpacts_p);
+                vlan_vid->vlan_vid = vlan_tag;
+                vlan_vid->push_vlan_if_needed = true;
+                ofpact_put_OUTPUT(ofpacts_p)->port = port_ofport;
+                ofpact_put_STRIP_VLAN(ofpacts_p);
+
+                ofctrl_add_flow(flow_table, OFTABLE_REMOTE_OUTPUT, 150, 0,
+                                &match, ofpacts_p);
+            }
+        }
+
         match_init_catchall(&match);
         ofpbuf_clear(ofpacts_p);
 
diff --git a/ovn/lib/logical-fields.c b/ovn/lib/logical-fields.c
index a8b5e3c..b9efa02 100644
--- a/ovn/lib/logical-fields.c
+++ b/ovn/lib/logical-fields.c
@@ -105,6 +105,10 @@ ovn_init_symtab(struct shash *symtab)
              MLF_FORCE_SNAT_FOR_LB_BIT);
     expr_symtab_add_subfield(symtab, "flags.force_snat_for_lb", NULL,
                              flags_str);
+    snprintf(flags_str, sizeof flags_str, "flags[%d]",
+             MLF_RCV_FROM_VLAN_BIT);
+    expr_symtab_add_subfield(symtab, "flags.rcv_from_vlan", NULL,
+                             flags_str);
 
     /* Connection tracking state. */
     expr_symtab_add_field(symtab, "ct_mark", MFF_CT_MARK, NULL, false);
diff --git a/ovn/lib/logical-fields.h b/ovn/lib/logical-fields.h
index b1dbb03..96250fd 100644
--- a/ovn/lib/logical-fields.h
+++ b/ovn/lib/logical-fields.h
@@ -50,6 +50,7 @@ enum mff_log_flags_bits {
     MLF_FORCE_SNAT_FOR_DNAT_BIT = 2,
     MLF_FORCE_SNAT_FOR_LB_BIT = 3,
     MLF_LOCAL_ONLY_BIT = 4,
+    MLF_RCV_FROM_VLAN_BIT = 5,
 };
 
 /* MFF_LOG_FLAGS_REG flag assignments */
@@ -75,6 +76,7 @@ enum mff_log_flags {
      * hypervisors should instead only be output to local targets
      */
     MLF_LOCAL_ONLY = (1 << MLF_LOCAL_ONLY_BIT),
+    MLF_RCV_FROM_VLAN = (1 << MLF_RCV_FROM_VLAN_BIT),
 };
 
 #endif /* ovn/lib/logical-fields.h */
diff --git a/ovn/northd/ovn-northd.c b/ovn/northd/ovn-northd.c
index 0e06776..f68da2b 100644
--- a/ovn/northd/ovn-northd.c
+++ b/ovn/northd/ovn-northd.c
@@ -4411,6 +4411,28 @@ add_route(struct hmap *lflows, const struct ovn_port *op,
      * routing. */
     ovn_lflow_add(lflows, op->od, S_ROUTER_IN_IP_ROUTING, priority,
                   ds_cstr(&match), ds_cstr(&actions));
+
+    /* When output port is distributed gateway port, check if the router
+     * input port is a patch port connected to vlan network.
+     * Traffic from VLAN network to external network should be redirected
+     * to "redirect-chassis" by setting REGBIT_NAT_REDIRECT flag.
+     * Later physical table 32 will output this traffic to gateway
+     * chassis using input network vlan tag */
+    if (op == op->od->l3dgw_port) {
+        ds_clear(&match);
+        ds_clear(&actions);
+
+        ds_put_format(&match, "ip%s.%s == %s/%d", is_ipv4 ? "4" : "6",
+                      dir, network_s, plen);
+        ds_put_format(&match, " && flags.rcv_from_vlan == 1");
+        ds_put_format(&match, " && !is_chassis_resident(%s)",
+                      op->od->l3redirect_port->json_key);
+
+        ovn_lflow_add(lflows, op->od, S_ROUTER_IN_IP_ROUTING,
+                      priority + 1, ds_cstr(&match),
+                      REGBIT_NAT_REDIRECT" = 1; next;");
+    }
+
     ds_destroy(&match);
     ds_destroy(&actions);
 }
@@ -4822,6 +4844,19 @@ build_lrouter_flows(struct hmap *datapaths, struct hmap *ports,
         }
         ovn_lflow_add(lflows, op->od, S_ROUTER_IN_ADMISSION, 50,
                       ds_cstr(&match), "next;");
+
+        /* VLAN traffic from localnet port should be allowed for
+         * router processing on the "redirect-chassis". */
+        if (op->od->l3dgw_port && op->od->l3redirect_port && op->peer &&
+            op->peer->od->localnet_port && (op != op->od->l3dgw_port)) {
+            ds_clear(&match);
+            ds_put_format(&match, "flags.rcv_from_vlan == 1");
+            ds_put_format(&match, " && inport == %s", op->json_key);
+            ds_put_format(&match, " && is_chassis_resident(%s)",
+                          op->od->l3redirect_port->json_key);
+            ovn_lflow_add(lflows, op->od, S_ROUTER_IN_ADMISSION, 100,
+                          ds_cstr(&match), "next;");
+        }
     }
 
     /* Logical router ingress table 1: IP Input. */
diff --git a/tests/ovn.at b/tests/ovn.at
index f12c24c..6916bd0 100644
--- a/tests/ovn.at
+++ b/tests/ovn.at
@@ -7713,6 +7713,233 @@ test_ip_packet gw2 gw1
 OVN_CLEANUP([hv1],[gw1],[gw2],[ext1])
 AT_CLEANUP
 
+# VLAN traffic for external network redirected through distributed router gateway port
+# should use vlans(i.e input network vlan tag) across hypervisors instead of tunneling.
+AT_SETUP([ovn -- vlan traffic for external network with distributed router gateway port])
+AT_SKIP_IF([test $HAVE_PYTHON = no])
+ovn_start
+
+# Logical network:
+# # One LR R1 that has switches foo (192.168.1.0/24) and
+# # alice (172.16.1.0/24) connected to it.  The logical port
+# # between R1 and alice has a "redirect-chassis" specified,
+# # i.e. it is the distributed router gateway port(172.16.1.6).
+# # Switch alice also has a localnet port defined.
+# # An additional switch outside has the same subnet as alice
+# # (172.16.1.0/24), a localnet port and nexthop port(172.16.1.1)
+# # which will receive the packet destined for external network
+# # (i.e 8.8.8.8 as destination ip).
+
+# Physical network:
+# # Three hypervisors hv[123].
+# # hv1 hosts vif foo1.
+# # hv2 is the "redirect-chassis" that hosts the distributed router gateway port.
+# # hv3 hosts nexthop port vif outside1.
+# # All other tests connect hypervisors to network n1 through br-phys for tunneling.
+# # But in this test, hv1 won't connect to n1(and no br-phys in hv1), and
+# # in order to show vlans(instead of tunneling) used between hv1 and hv2,
+# # a new network n2 created and hv1 and hv2 connected to this network through br-ex.
+# # hv2 and hv3 are still connected to n1 network through br-phys.
+net_add n1
+
+# We are not calling ovn_attach for hv1, to avoid adding br-phys.
+# Tunneling won't work in hv1 as ovn-encap-ip is not added to any bridge in hv1
+sim_add hv1
+as hv1
+ovs-vsctl \
+    -- set Open_vSwitch . external-ids:system-id=hv1 \
+    -- set Open_vSwitch . external-ids:ovn-remote=unix:$ovs_base/ovn-sb/ovn-sb.sock \
+    -- set Open_vSwitch . external-ids:ovn-encap-type=geneve,vxlan \
+    -- set Open_vSwitch . external-ids:ovn-encap-ip=192.168.0.1 \
+    -- add-br br-int \
+    -- set bridge br-int fail-mode=secure other-config:disable-in-band=true
+start_daemon ovn-controller
+ovs-vsctl -- add-port br-int hv1-vif1 -- \
+    set interface hv1-vif1 external-ids:iface-id=foo1 \
+    ofport-request=1
+
+sim_add hv2
+as hv2
+ovs-vsctl add-br br-phys
+ovn_attach n1 br-phys 192.168.0.2
+
+sim_add hv3
+as hv3
+ovs-vsctl add-br br-phys
+ovn_attach n1 br-phys 192.168.0.3
+ovs-vsctl -- add-port br-int hv3-vif1 -- \
+    set interface hv3-vif1 external-ids:iface-id=outside1 \
+    options:tx_pcap=hv3/vif1-tx.pcap \
+    options:rxq_pcap=hv3/vif1-rx.pcap \
+    ofport-request=1
+
+# Create network n2 for vlan connectivity between hv1 and hv2
+net_add n2
+
+as hv1
+ovs-vsctl add-br br-ex
+net_attach n2 br-ex
+
+as hv2
+ovs-vsctl add-br br-ex
+net_attach n2 br-ex
+
+as hv1 ovs-vsctl set open . external-ids:ovn-bridge-mappings="public:br-ex"
+as hv2 ovs-vsctl set open . external-ids:ovn-bridge-mappings="public:br-ex,phys:br-phys"
+as hv3 ovs-vsctl set open . external-ids:ovn-bridge-mappings=phys:br-phys
+OVN_POPULATE_ARP
+
+ovn-nbctl create Logical_Router name=R1
+
+ovn-nbctl ls-add foo
+ovn-nbctl ls-add alice
+ovn-nbctl ls-add outside
+
+# Connect foo to R1
+ovn-nbctl lrp-add R1 foo 00:00:01:01:02:03 192.168.1.1/24
+ovn-nbctl lsp-add foo rp-foo -- set Logical_Switch_Port rp-foo \
+    type=router options:router-port=foo \
+    -- lsp-set-addresses rp-foo router
+
+# Connect alice to R1 as distributed router gateway port (172.16.1.6) on hv2
+ovn-nbctl lrp-add R1 alice 00:00:02:01:02:03 172.16.1.6/24 \
+    -- set Logical_Router_Port alice options:redirect-chassis="hv2"
+ovn-nbctl lsp-add alice rp-alice -- set Logical_Switch_Port rp-alice \
+    type=router options:router-port=alice \
+    -- lsp-set-addresses rp-alice router
+
+# Create logical port foo1 in foo
+ovn-nbctl lsp-add foo foo1 \
+-- lsp-set-addresses foo1 "f0:00:00:01:02:03 192.168.1.2"
+
+# Create logical port outside1 in outside, which is a nexthop address
+# for 172.16.1.0/24
+ovn-nbctl lsp-add outside outside1 \
+-- lsp-set-addresses outside1 "f0:00:00:01:02:04 172.16.1.1"
+
+# Set default gateway (nexthop) to 172.16.1.1
+ovn-nbctl lr-route-add R1 "0.0.0.0/0" 172.16.1.1 alice
+AT_CHECK([ovn-nbctl lr-nat-add R1 snat 172.16.1.6 192.168.1.1/24])
+
+ovn-nbctl lsp-add foo ln-foo
+ovn-nbctl lsp-set-addresses ln-foo unknown
+ovn-nbctl lsp-set-options ln-foo network_name=public
+ovn-nbctl lsp-set-type ln-foo localnet
+AT_CHECK([ovn-nbctl set Logical_Switch_Port ln-foo tag=2])
+
+# Create localnet port in alice
+ovn-nbctl lsp-add alice ln-alice
+ovn-nbctl lsp-set-addresses ln-alice unknown
+ovn-nbctl lsp-set-type ln-alice localnet
+ovn-nbctl lsp-set-options ln-alice network_name=phys
+
+# Create localnet port in outside
+ovn-nbctl lsp-add outside ln-outside
+ovn-nbctl lsp-set-addresses ln-outside unknown
+ovn-nbctl lsp-set-type ln-outside localnet
+ovn-nbctl lsp-set-options ln-outside network_name=phys
+ovn-nbctl --wait=hv sync
+
+ip_to_hex() {
+    printf "%02x%02x%02x%02x" "$@"
+}
+gw_ip=$(ip_to_hex 172 16 1 6)
+src_ip=$(ip_to_hex 192 168 1 2)
+dst_ip=$(ip_to_hex 8 8 8 8)
+nexthop_ip=$(ip_to_hex 172 16 1 1)
+
+# Send ip packet from foo1 to 8.8.8.8
+src_mac="f00000010203"
+dst_mac="000001010203"
+packet=${dst_mac}${src_mac}08004500001c0000000040110000${src_ip}${dst_ip}0035111100080000
+
+as hv1 ovs-appctl netdev-dummy/receive hv1-vif1 $packet
+sleep 2
+
+# ARP request packet to expect at outside1
+src_mac="000002010203"
+arp_request=ffffffffffff${src_mac}08060001080006040001${src_mac}${gw_ip}000000000000${nexthop_ip}
+echo $arp_request >> hv3-vif1.expected
+OVN_CHECK_PACKETS([hv3/vif1-tx.pcap], [hv3-vif1.expected])
+
+# Send ARP reply from outside1 back to the router
+reply_mac="f00000010204"
+arp_reply=${src_mac}${reply_mac}08060001080006040002${reply_mac}${nexthop_ip}${src_mac}${gw_ip}
+
+as hv3 ovs-appctl netdev-dummy/receive hv3-vif1 $arp_reply
+
+# Allow some time for ovn-northd and ovn-controller to catch up.
+# XXX This should be more systematic.
+sleep 1
+
+# VLAN tagged packet with distributed gateway port(172.16.1.6) MAC as destination MAC
+# is expected on bridge connecting hv1 and hv2
+src_mac="f00000010203"
+dst_mac="000002010203"
+expected=${dst_mac}${src_mac}8100000208004500001c0000000040110000${src_ip}${dst_ip}0035111100080000
+echo $expected > hv1-br-ex_n2.expected
+
+# Packet to Expect at outside1 i.e nexthop(172.16.1.1) port.
+# As connection tracking not enabled for this test, snat can't be done on the packet.
+# We still see foo1 as the source ip address. But source mac(172.16.1.6 MAC) and
+# dest mac(172.16.1.1 mac) are properly configured.
+src_mac="000002010203"
+dst_mac="f00000010204"
+expected=${dst_mac}${src_mac}08004500001c000000003f110100${src_ip}${dst_ip}0035111100080000
+echo $expected > hv3-vif1.expected
+
+reset_pcap_file() {
+    local iface=$1
+    local pcap_file=$2
+    ovs-vsctl -- set Interface $iface options:tx_pcap=dummy-tx.pcap \
+options:rxq_pcap=dummy-rx.pcap
+    rm -f ${pcap_file}*.pcap
+    ovs-vsctl -- set Interface $iface options:tx_pcap=${pcap_file}-tx.pcap \
+options:rxq_pcap=${pcap_file}-rx.pcap
+}
+
+as hv1 reset_pcap_file br-ex_n2 hv1/br-ex_n2
+as hv3 reset_pcap_file hv3-vif1 hv3/vif1
+sleep 1
+as hv1 ovs-appctl netdev-dummy/receive hv1-vif1 $packet
+sleep 2
+
+# On hv1, table 65 for packets going from vlan switch pipleline to router pipleine
+# set MLF_RCV_FROM_VLAN flag
+AT_CHECK([as hv1 ovs-ofctl dump-flows br-int table=65 | grep "priority=100,reg15=0x1,metadata=0x2" \
+| grep actions=clone | grep "load:0x1->NXM_NX_REG10" | wc -l], [0], [[1
+]])
+# On hv1, because of snat rule in table 15, a higher priority(i.e 2) flow
+# added for packets with MLF_RCV_FROM_VLAN flag with output as distributed
+# gateway port, which sets REGBIT_NAT_REDIRECT flag
+AT_CHECK([as hv1 ovs-ofctl dump-flows br-int table=15 | grep "priority=2,ip,reg10=0x20/0x20,metadata=0x1" \
+| grep "actions=load:0x1->OXM_OF_PKT_REG4" | wc -l], [0], [[1
+]])
+
+# On hv1, table 32 flow which tags packet with source network vlan tag and sends it to hv2
+# through br-ex
+AT_CHECK([as hv1 ovs-ofctl dump-flows br-int table=32 | grep "priority=150,reg14=0x1,reg15=0x3,metadata=0x1" \
+| grep "actions=mod_vlan_vid:2" | grep "n_packets=2," | wc -l], [0], [[1
+]])
+
+# On hv2 table 0, vlan tagged packet is sent through router pipeline
+# by setting MLF_RCV_FROM_VLAN flag (REG10)
+AT_CHECK([as hv2 ovs-ofctl dump-flows br-int | grep "table=0," | grep "priority=150" | grep "dl_vlan=2" | \
+grep "actions=strip_vlan,load:0x1->OXM_OF_METADATA" | grep "load:0x1->NXM_NX_REG14" | \
+grep "load:0x1->NXM_NX_REG10" | wc -l], [0], [[1
+]])
+# on hv2 table 8, allow packets with router metadata and with MLF_RCV_FROM_VLAN flag
+AT_CHECK([as hv2 ovs-ofctl dump-flows br-int table=8 | grep "priority=100,reg10=0x20/0x20,reg14=0x1,metadata=0x1" | wc -l], [0], [[1
+]])
+
+# Check vlan tagged packet on the bridge connecting hv1 and hv2
+OVN_CHECK_PACKETS([hv1/br-ex_n2-tx.pcap], [hv1-br-ex_n2.expected])
+# Check expected packet on nexthop interface
+OVN_CHECK_PACKETS([hv3/vif1-tx.pcap], [hv3-vif1.expected])
+
+OVN_CLEANUP([hv1],[hv2],[hv3])
+AT_CLEANUP
+
 AT_SETUP([ovn -- 1 LR with distributed router gateway port])
 AT_SKIP_IF([test $HAVE_PYTHON = no])
 ovn_start
