diff --git a/AUTHORS.rst b/AUTHORS.rst
index fc08f3bbf..f99df385b 100644
--- a/AUTHORS.rst
+++ b/AUTHORS.rst
@@ -589,6 +589,7 @@ David Evans                     davidjoshuaevans@gmail.com
 David Palma                     palma@onesource.pt
 David van Moolenbroek           dvmoolenbroek@aimvalley.nl
 Derek Cormier                   derek.cormier@lab.ntt.co.jp
+Derrick Lim                     derrick.lim@rakuten.com
 Dhaval Badiani                  dbadiani@vmware.com
 DK Moon
 Ding Zhi                        zhi.ding@6wind.com
diff --git a/ofproto/ofproto-dpif-xlate.c b/ofproto/ofproto-dpif-xlate.c
index 1cf4d5f7c..89f183182 100644
--- a/ofproto/ofproto-dpif-xlate.c
+++ b/ofproto/ofproto-dpif-xlate.c
@@ -3815,6 +3815,8 @@ native_tunnel_output(struct xlate_ctx *ctx, const struct xport *xport,
 
     if (flow->tunnel.ip_src) {
         in6_addr_set_mapped_ipv4(&s_ip6, flow->tunnel.ip_src);
+    } else if (ipv6_addr_is_set(&flow->tunnel.ipv6_src)) {
+        s_ip6 = flow->tunnel.ipv6_src;
     }
 
     err = tnl_route_lookup_flow(ctx, flow, &d_ip6, &s_ip6, &out_dev);
diff --git a/tests/tunnel-push-pop-ipv6.at b/tests/tunnel-push-pop-ipv6.at
index 6d9ac6841..3f2cf8429 100644
--- a/tests/tunnel-push-pop-ipv6.at
+++ b/tests/tunnel-push-pop-ipv6.at
@@ -642,3 +642,87 @@ Listening ports:
 
 OVS_VSWITCHD_STOP
 AT_CLEANUP
+
+AT_SETUP([tunnel_push_pop_ipv6 - local_ip configuration])
+
+OVS_VSWITCHD_START(
+    [add-port br0 p0 \
+     -- set Interface p0 type=dummy ofport_request=1 \
+                         other-config:hwaddr=aa:55:aa:55:00:00])
+AT_CHECK([ovs-appctl vlog/set dpif_netdev:dbg])
+AT_CHECK([ovs-vsctl add-br int-br -- set bridge int-br datapath_type=dummy])
+AT_CHECK([ovs-vsctl add-port int-br t2 \
+          -- set Interface t2 type=geneve \
+                              options:local_ip=2001:beef::88 \
+                              options:remote_ip=2001:cafe::92 \
+                              options:key=123 ofport_request=2])
+
+dnl Setup multiple IP addresses.
+AT_CHECK([ovs-appctl netdev-dummy/ip6addr br0 2001:cafe::88/64], [0], [OK
+])
+AT_CHECK([ovs-appctl netdev-dummy/ip6addr br0 2001:beef::88/64], [0], [OK
+])
+dnl Checking that a local route for added IP was successfully installed.
+AT_CHECK([ovs-appctl ovs/route/show | grep Cached | sort], [0], [dnl
+Cached: 2001:beef::/64 dev br0 SRC 2001:beef::88 local
+Cached: 2001:cafe::/64 dev br0 SRC 2001:cafe::88 local
+])
+AT_CHECK([ovs-ofctl add-flow br0 action=normal])
+AT_CHECK([ovs-ofctl add-flow int-br action=normal])
+
+dnl This Neighbor Advertisement from p0 has two effects:
+dnl 1. The neighbor cache will learn that 2001:cafe::92 is at f8:bc:12:44:34:b6.
+dnl 2. The br0 mac learning will learn that f8:bc:12:44:34:b6 is on p0.
+AT_CHECK([ovs-appctl netdev-dummy/receive p0 dnl
+ 'recirc_id(0),in_port(1),dnl
+  eth(src=f8:bc:12:44:34:b6,dst=aa:55:aa:55:00:00),eth_type(0x86dd),dnl
+  ipv6(src=2001:cafe::92,dst=2001:cafe::88,label=0,proto=58,tclass=0,hlimit=255,frag=no),dnl
+  icmpv6(type=136,code=0),dnl
+  nd(target=2001:cafe::92,sll=00:00:00:00:00:00,tll=f8:bc:12:44:34:b6)'
+])
+
+dnl Check that local_ip is used for encapsulation in the trace.
+AT_CHECK([ovs-appctl ofproto/trace int-br in_port=LOCAL \
+                | grep -E 'tunnel|actions'], [0], [dnl
+     -> output to native tunnel
+     -> tunneling to 2001:cafe::92 via br0
+     -> tunneling from aa:55:aa:55:00:00 2001:beef::88 to f8:bc:12:44:34:b6 2001:cafe::92
+Datapath actions: tnl_push(tnl_port(6081),header(size=70,type=5,dnl
+eth(dst=f8:bc:12:44:34:b6,src=aa:55:aa:55:00:00,dl_type=0x86dd),dnl
+ipv6(src=2001:beef::88,dst=2001:cafe::92,label=0,proto=17,tclass=0x0,hlimit=64),dnl
+udp(src=0,dst=6081,csum=0xffff),geneve(vni=0x7b)),out_port(100)),1
+])
+
+dnl Now check that the packet actually has the local_ip in the header.
+AT_CHECK([ovs-vsctl -- set Interface p0 options:tx_pcap=p0.pcap])
+
+packet=50540000000a5054000000091234
+eth=f8bc124434b6aa55aa55000086dd
+ip6=60000000001e11402001beef0000000000000000000000882001cafe000000000000000000000092
+dnl Source port is based on a packet hash, so it may differ depending on the
+dnl compiler flags and CPU type.  Same for UDP checksum.  Masked with '....'.
+udp=....17c1001e....
+geneve=0000655800007b00
+encap=${eth}${ip6}${udp}${geneve}
+dnl Output to tunnel from a int-br internal port.
+dnl Checking that the packet arrived and it was correctly encapsulated.
+AT_CHECK([ovs-appctl netdev-dummy/receive int-br "${packet}"])
+OVS_WAIT_UNTIL([test $(ovs-pcap p0.pcap | grep -c "${encap}${packet}") -eq 1])
+dnl Sending again to exercise the non-miss upcall path.
+AT_CHECK([ovs-appctl netdev-dummy/receive int-br "${packet}"])
+OVS_WAIT_UNTIL([test $(ovs-pcap p0.pcap | grep -c "${encap}${packet}") -eq 2])
+
+dnl Finally, checking that the datapath flow also has a local_ip.
+AT_CHECK([ovs-appctl dpctl/dump-flows | grep tnl_push \
+            | strip_ufid | strip_used], [0], [dnl
+recirc_id(0),in_port(2),packet_type(ns=0,id=0),dnl
+eth(src=50:54:00:00:00:09,dst=50:54:00:00:00:0a),eth_type(0x1234), dnl
+packets:1, bytes:14, used:0.0s, dnl
+actions:tnl_push(tnl_port(6081),header(size=70,type=5,dnl
+eth(dst=f8:bc:12:44:34:b6,src=aa:55:aa:55:00:00,dl_type=0x86dd),dnl
+ipv6(src=2001:beef::88,dst=2001:cafe::92,label=0,proto=17,tclass=0x0,hlimit=64),dnl
+udp(src=0,dst=6081,csum=0xffff),geneve(vni=0x7b)),out_port(100)),1
+])
+
+OVS_VSWITCHD_STOP
+AT_CLEANUP
diff --git a/tests/tunnel-push-pop.at b/tests/tunnel-push-pop.at
index 04d17b71f..97405636f 100644
--- a/tests/tunnel-push-pop.at
+++ b/tests/tunnel-push-pop.at
@@ -779,6 +779,88 @@ AT_CHECK([ovs-appctl dpctl/dump-flows | grep -q 'slow_path(action)'], [0])
 OVS_VSWITCHD_STOP
 AT_CLEANUP
 
+AT_SETUP([tunnel_push_pop - local_ip configuration])
+
+OVS_VSWITCHD_START(
+    [add-port br0 p0 \
+     -- set Interface p0 type=dummy ofport_request=1 \
+                         other-config:hwaddr=aa:55:aa:55:00:00])
+AT_CHECK([ovs-appctl vlog/set dpif_netdev:dbg])
+AT_CHECK([ovs-vsctl add-br int-br -- set bridge int-br datapath_type=dummy])
+AT_CHECK([ovs-vsctl add-port int-br t2 \
+          -- set Interface t2 type=geneve \
+                              options:local_ip=2.2.2.88 \
+                              options:remote_ip=1.1.2.92 \
+                              options:key=123 ofport_request=2])
+
+dnl Setup multiple IP addresses.
+AT_CHECK([ovs-appctl netdev-dummy/ip4addr br0 1.1.2.88/24], [0], [OK
+])
+AT_CHECK([ovs-appctl netdev-dummy/ip4addr br0 2.2.2.88/24], [0], [OK
+])
+dnl Checking that a local route for added IP was successfully installed.
+AT_CHECK([ovs-appctl ovs/route/show | grep Cached | sort], [0], [dnl
+Cached: 1.1.2.0/24 dev br0 SRC 1.1.2.88 local
+Cached: 2.2.2.0/24 dev br0 SRC 2.2.2.88 local
+])
+AT_CHECK([ovs-ofctl add-flow br0 action=normal])
+AT_CHECK([ovs-ofctl add-flow int-br action=normal])
+
+dnl This ARP reply from p0 has two effects:
+dnl 1. The ARP cache will learn that 1.1.2.92 is at f8:bc:12:44:34:b6.
+dnl 2. The br0 mac learning will learn that f8:bc:12:44:34:b6 is on p0.
+AT_CHECK([ovs-appctl netdev-dummy/receive p0 dnl
+ 'recirc_id(0),in_port(1),dnl
+  eth(src=f8:bc:12:44:34:b6,dst=ff:ff:ff:ff:ff:ff),eth_type(0x0806),dnl
+  arp(sip=1.1.2.92,tip=1.1.2.88,op=2,sha=f8:bc:12:44:34:b6,tha=00:00:00:00:00:00)'
+])
+
+dnl Check that local_ip is used for encapsulation in the trace.
+AT_CHECK([ovs-appctl ofproto/trace int-br in_port=LOCAL \
+                | grep -E 'tunnel|actions'], [0], [dnl
+     -> output to native tunnel
+     -> tunneling to 1.1.2.92 via br0
+     -> tunneling from aa:55:aa:55:00:00 2.2.2.88 to f8:bc:12:44:34:b6 1.1.2.92
+Datapath actions: tnl_push(tnl_port(6081),header(size=50,type=5,dnl
+eth(dst=f8:bc:12:44:34:b6,src=aa:55:aa:55:00:00,dl_type=0x0800),dnl
+ipv4(src=2.2.2.88,dst=1.1.2.92,proto=17,tos=0,ttl=64,frag=0x4000),dnl
+udp(src=0,dst=6081,csum=0x0),geneve(vni=0x7b)),out_port(100)),1
+])
+
+dnl Now check that the packet actually has the local_ip in the header.
+AT_CHECK([ovs-vsctl -- set Interface p0 options:tx_pcap=p0.pcap])
+
+packet=50540000000a5054000000091234
+eth=f8bc124434b6aa55aa5500000800
+ip4=450000320000400040113305020202580101025c
+dnl Source port is based on a packet hash, so it may differ depending on the
+dnl compiler flags and CPU type.  Masked with '....'.
+udp=....17c1001e0000
+geneve=0000655800007b00
+encap=${eth}${ip4}${udp}${geneve}
+dnl Output to tunnel from a int-br internal port.
+dnl Checking that the packet arrived and it was correctly encapsulated.
+AT_CHECK([ovs-appctl netdev-dummy/receive int-br "${packet}"])
+OVS_WAIT_UNTIL([test $(ovs-pcap p0.pcap | grep -c "${encap}${packet}") -eq 1])
+dnl Sending again to exercise the non-miss upcall path.
+AT_CHECK([ovs-appctl netdev-dummy/receive int-br "${packet}"])
+OVS_WAIT_UNTIL([test $(ovs-pcap p0.pcap | grep -c "${encap}${packet}") -eq 2])
+
+dnl Finally, checking that the datapath flow also has a local_ip.
+AT_CHECK([ovs-appctl dpctl/dump-flows | grep tnl_push \
+            | strip_ufid | strip_used], [0], [dnl
+recirc_id(0),in_port(2),packet_type(ns=0,id=0),dnl
+eth(src=50:54:00:00:00:09,dst=50:54:00:00:00:0a),eth_type(0x1234), dnl
+packets:1, bytes:14, used:0.0s, dnl
+actions:tnl_push(tnl_port(6081),header(size=50,type=5,dnl
+eth(dst=f8:bc:12:44:34:b6,src=aa:55:aa:55:00:00,dl_type=0x0800),dnl
+ipv4(src=2.2.2.88,dst=1.1.2.92,proto=17,tos=0,ttl=64,frag=0x4000),dnl
+udp(src=0,dst=6081,csum=0x0),geneve(vni=0x7b)),out_port(100)),1
+])
+
+OVS_VSWITCHD_STOP
+AT_CLEANUP
+
 AT_SETUP([tunnel_push_pop - underlay bridge match])
 
 OVS_VSWITCHD_START([add-port br0 p0 -- set Interface p0 type=dummy ofport_request=1 other-config:hwaddr=aa:55:aa:55:00:00])
