diff --git a/drivers/net/netdevsim/Makefile b/drivers/net/netdevsim/Makefile
index 449b2a1..0fee1d0 100644
--- a/drivers/net/netdevsim/Makefile
+++ b/drivers/net/netdevsim/Makefile
@@ -13,3 +13,7 @@ endif
 ifneq ($(CONFIG_NET_DEVLINK),)
 netdevsim-objs += devlink.o fib.o
 endif
+
+ifneq ($(CONFIG_XFRM_OFFLOAD),)
+netdevsim-objs += ipsec.o
+endif
diff --git a/drivers/net/netdevsim/ipsec.c b/drivers/net/netdevsim/ipsec.c
new file mode 100644
index 0000000..1a23426
--- /dev/null
+++ b/drivers/net/netdevsim/ipsec.c
@@ -0,0 +1,298 @@
+// SPDX-License-Identifier: GPL-2.0
+/* Copyright(c) 2018 Oracle and/or its affiliates. All rights reserved. */
+
+#include <crypto/aead.h>
+#include <linux/debugfs.h>
+#include <net/xfrm.h>
+
+#include "netdevsim.h"
+
+#define NSIM_IPSEC_AUTH_BITS	128
+
+static ssize_t nsim_dbg_netdev_ops_read(struct file *filp,
+					char __user *buffer,
+					size_t count, loff_t *ppos)
+{
+	struct netdevsim *ns = filp->private_data;
+	struct nsim_ipsec *ipsec = &ns->ipsec;
+	size_t bufsize;
+	char *buf, *p;
+	int len;
+	int i;
+
+	/* the buffer needed is
+	 * (num SAs * 3 lines each * ~60 bytes per line) + one more line
+	 */
+	bufsize = (ipsec->count * 4 * 60) + 60;
+	buf = kzalloc(bufsize, GFP_KERNEL);
+	if (!buf)
+		return -ENOMEM;
+
+	p = buf;
+	p += snprintf(p, bufsize - (p - buf),
+		      "SA count=%u tx=%u\n",
+		      ipsec->count, ipsec->tx);
+
+	for (i = 0; i < NSIM_IPSEC_MAX_SA_COUNT; i++) {
+		struct nsim_sa *sap = &ipsec->sa[i];
+
+		if (!sap->used)
+			continue;
+
+		p += snprintf(p, bufsize - (p - buf),
+			      "sa[%i] %cx ipaddr=0x%08x %08x %08x %08x\n",
+			      i, (sap->rx ? 'r' : 't'), sap->ipaddr[0],
+			      sap->ipaddr[1], sap->ipaddr[2], sap->ipaddr[3]);
+		p += snprintf(p, bufsize - (p - buf),
+			      "sa[%i]    spi=0x%08x proto=0x%x salt=0x%08x crypt=%d\n",
+			      i, be32_to_cpu(sap->xs->id.spi),
+			      sap->xs->id.proto, sap->salt, sap->crypt);
+		p += snprintf(p, bufsize - (p - buf),
+			      "sa[%i]    key=0x%08x %08x %08x %08x\n",
+			      i, sap->key[0], sap->key[1],
+			      sap->key[2], sap->key[3]);
+	}
+
+	len = simple_read_from_buffer(buffer, count, ppos, buf, p - buf);
+
+	kfree(buf);
+	return len;
+}
+
+static const struct file_operations ipsec_dbg_fops = {
+	.owner = THIS_MODULE,
+	.open = simple_open,
+	.read = nsim_dbg_netdev_ops_read,
+};
+
+static int nsim_ipsec_find_empty_idx(struct nsim_ipsec *ipsec)
+{
+	u32 i;
+
+	if (ipsec->count == NSIM_IPSEC_MAX_SA_COUNT)
+		return -ENOSPC;
+
+	/* search sa table */
+	for (i = 0; i < NSIM_IPSEC_MAX_SA_COUNT; i++) {
+		if (!ipsec->sa[i].used)
+			return i;
+	}
+
+	return -ENOSPC;
+}
+
+static int nsim_ipsec_parse_proto_keys(struct xfrm_state *xs,
+				       u32 *mykey, u32 *mysalt)
+{
+	const char aes_gcm_name[] = "rfc4106(gcm(aes))";
+	struct net_device *dev = xs->xso.dev;
+	unsigned char *key_data;
+	char *alg_name = NULL;
+	int key_len;
+
+	if (!xs->aead) {
+		netdev_err(dev, "Unsupported IPsec algorithm\n");
+		return -EINVAL;
+	}
+
+	if (xs->aead->alg_icv_len != NSIM_IPSEC_AUTH_BITS) {
+		netdev_err(dev, "IPsec offload requires %d bit authentication\n",
+			   NSIM_IPSEC_AUTH_BITS);
+		return -EINVAL;
+	}
+
+	key_data = &xs->aead->alg_key[0];
+	key_len = xs->aead->alg_key_len;
+	alg_name = xs->aead->alg_name;
+
+	if (strcmp(alg_name, aes_gcm_name)) {
+		netdev_err(dev, "Unsupported IPsec algorithm - please use %s\n",
+			   aes_gcm_name);
+		return -EINVAL;
+	}
+
+	/* 160 accounts for 16 byte key and 4 byte salt */
+	if (key_len > NSIM_IPSEC_AUTH_BITS) {
+		*mysalt = ((u32 *)key_data)[4];
+	} else if (key_len == NSIM_IPSEC_AUTH_BITS) {
+		*mysalt = 0;
+	} else {
+		netdev_err(dev, "IPsec hw offload only supports 128 bit keys with optional 32 bit salt\n");
+		return -EINVAL;
+	}
+	memcpy(mykey, key_data, 16);
+
+	return 0;
+}
+
+static int nsim_ipsec_add_sa(struct xfrm_state *xs)
+{
+	struct nsim_ipsec *ipsec;
+	struct net_device *dev;
+	struct netdevsim *ns;
+	struct nsim_sa sa;
+	u16 sa_idx;
+	int ret;
+
+	dev = xs->xso.dev;
+	ns = netdev_priv(dev);
+	ipsec = &ns->ipsec;
+
+	if (xs->id.proto != IPPROTO_ESP && xs->id.proto != IPPROTO_AH) {
+		netdev_err(dev, "Unsupported protocol 0x%04x for ipsec offload\n",
+			   xs->id.proto);
+		return -EINVAL;
+	}
+
+	if (xs->calg) {
+		netdev_err(dev, "Compression offload not supported\n");
+		return -EINVAL;
+	}
+
+	/* find the first unused index */
+	ret = nsim_ipsec_find_empty_idx(ipsec);
+	if (ret < 0) {
+		netdev_err(dev, "No space for SA in Rx table!\n");
+		return ret;
+	}
+	sa_idx = (u16)ret;
+
+	memset(&sa, 0, sizeof(sa));
+	sa.used = true;
+	sa.xs = xs;
+
+	if (sa.xs->id.proto & IPPROTO_ESP)
+		sa.crypt = xs->ealg || xs->aead;
+
+	/* get the key and salt */
+	ret = nsim_ipsec_parse_proto_keys(xs, sa.key, &sa.salt);
+	if (ret) {
+		netdev_err(dev, "Failed to get key data for SA table\n");
+		return ret;
+	}
+
+	if (xs->xso.flags & XFRM_OFFLOAD_INBOUND) {
+		sa.rx = true;
+
+		if (xs->props.family == AF_INET6)
+			memcpy(sa.ipaddr, &xs->id.daddr.a6, 16);
+		else
+			memcpy(&sa.ipaddr[3], &xs->id.daddr.a4, 4);
+	}
+
+	/* the preparations worked, so save the info */
+	memcpy(&ipsec->sa[sa_idx], &sa, sizeof(sa));
+
+	/* the XFRM stack doesn't like offload_handle == 0,
+	 * so add a bitflag in case our array index is 0
+	 */
+	xs->xso.offload_handle = sa_idx | NSIM_IPSEC_VALID;
+	ipsec->count++;
+
+	return 0;
+}
+
+static void nsim_ipsec_del_sa(struct xfrm_state *xs)
+{
+	struct net_device *dev = xs->xso.dev;
+	struct netdevsim *ns = netdev_priv(dev);
+	struct nsim_ipsec *ipsec = &ns->ipsec;
+	u16 sa_idx;
+
+	sa_idx = xs->xso.offload_handle & ~NSIM_IPSEC_VALID;
+	if (!ipsec->sa[sa_idx].used) {
+		netdev_err(dev, "Invalid SA for delete sa_idx=%d\n", sa_idx);
+		return;
+	}
+
+	memset(&ipsec->sa[sa_idx], 0, sizeof(struct nsim_sa));
+	ipsec->count--;
+}
+
+static bool nsim_ipsec_offload_ok(struct sk_buff *skb, struct xfrm_state *xs)
+{
+	struct net_device *dev = xs->xso.dev;
+	struct netdevsim *ns = netdev_priv(dev);
+	struct nsim_ipsec *ipsec = &ns->ipsec;
+
+	ipsec->ok++;
+
+	return true;
+}
+
+static const struct xfrmdev_ops nsim_xfrmdev_ops = {
+	.xdo_dev_state_add	= nsim_ipsec_add_sa,
+	.xdo_dev_state_delete	= nsim_ipsec_del_sa,
+	.xdo_dev_offload_ok	= nsim_ipsec_offload_ok,
+};
+
+bool nsim_ipsec_tx(struct netdevsim *ns, struct sk_buff *skb)
+{
+	struct nsim_ipsec *ipsec = &ns->ipsec;
+	struct xfrm_state *xs;
+	struct nsim_sa *tsa;
+	u32 sa_idx;
+
+	/* do we even need to check this packet? */
+	if (!skb->sp)
+		return true;
+
+	if (unlikely(!skb->sp->len)) {
+		netdev_err(ns->netdev, "no xfrm state len = %d\n",
+			   skb->sp->len);
+		return false;
+	}
+
+	xs = xfrm_input_state(skb);
+	if (unlikely(!xs)) {
+		netdev_err(ns->netdev, "no xfrm_input_state() xs = %p\n", xs);
+		return false;
+	}
+
+	sa_idx = xs->xso.offload_handle & ~NSIM_IPSEC_VALID;
+	if (unlikely(sa_idx > NSIM_IPSEC_MAX_SA_COUNT)) {
+		netdev_err(ns->netdev, "bad sa_idx=%d max=%d\n",
+			   sa_idx, NSIM_IPSEC_MAX_SA_COUNT);
+		return false;
+	}
+
+	tsa = &ipsec->sa[sa_idx];
+	if (unlikely(!tsa->used)) {
+		netdev_err(ns->netdev, "unused sa_idx=%d\n", sa_idx);
+		return false;
+	}
+
+	if (xs->id.proto != IPPROTO_ESP && xs->id.proto != IPPROTO_AH) {
+		netdev_err(ns->netdev, "unexpected proto=%d\n", xs->id.proto);
+		return false;
+	}
+
+	ipsec->tx++;
+
+	return true;
+}
+
+void nsim_ipsec_init(struct netdevsim *ns)
+{
+	ns->netdev->xfrmdev_ops = &nsim_xfrmdev_ops;
+
+#define NSIM_ESP_FEATURES	(NETIF_F_HW_ESP | \
+				 NETIF_F_HW_ESP_TX_CSUM | \
+				 NETIF_F_GSO_ESP)
+
+	ns->netdev->features |= NSIM_ESP_FEATURES;
+	ns->netdev->hw_enc_features |= NSIM_ESP_FEATURES;
+
+	ns->ipsec.pfile = debugfs_create_file("ipsec", 0400, ns->ddir, ns,
+					      &ipsec_dbg_fops);
+}
+
+void nsim_ipsec_teardown(struct netdevsim *ns)
+{
+	struct nsim_ipsec *ipsec = &ns->ipsec;
+
+	if (ipsec->count)
+		netdev_err(ns->netdev, "tearing down IPsec offload with %d SAs left\n",
+			   ipsec->count);
+	debugfs_remove_recursive(ipsec->pfile);
+}
diff --git a/drivers/net/netdevsim/netdev.c b/drivers/net/netdevsim/netdev.c
index ec68f38..6ce8604d 100644
--- a/drivers/net/netdevsim/netdev.c
+++ b/drivers/net/netdevsim/netdev.c
@@ -171,6 +171,8 @@ static int nsim_init(struct net_device *dev)
 	if (err)
 		goto err_unreg_dev;
 
+	nsim_ipsec_init(ns);
+
 	return 0;
 
 err_unreg_dev:
@@ -186,6 +188,7 @@ static void nsim_uninit(struct net_device *dev)
 {
 	struct netdevsim *ns = netdev_priv(dev);
 
+	nsim_ipsec_teardown(ns);
 	nsim_devlink_teardown(ns);
 	debugfs_remove_recursive(ns->ddir);
 	nsim_bpf_uninit(ns);
@@ -203,11 +206,15 @@ static netdev_tx_t nsim_start_xmit(struct sk_buff *skb, struct net_device *dev)
 {
 	struct netdevsim *ns = netdev_priv(dev);
 
+	if (!nsim_ipsec_tx(ns, skb))
+		goto out;
+
 	u64_stats_update_begin(&ns->syncp);
 	ns->tx_packets++;
 	ns->tx_bytes += skb->len;
 	u64_stats_update_end(&ns->syncp);
 
+out:
 	dev_kfree_skb(skb);
 
 	return NETDEV_TX_OK;
diff --git a/drivers/net/netdevsim/netdevsim.h b/drivers/net/netdevsim/netdevsim.h
index 3a8581a..29448e8 100644
--- a/drivers/net/netdevsim/netdevsim.h
+++ b/drivers/net/netdevsim/netdevsim.h
@@ -29,6 +29,27 @@ struct bpf_prog;
 struct dentry;
 struct nsim_vf_config;
 
+#define NSIM_IPSEC_MAX_SA_COUNT		33
+#define NSIM_IPSEC_VALID		BIT(31)
+
+struct nsim_sa {
+	struct xfrm_state *xs;
+	__be32 ipaddr[4];
+	u32 key[4];
+	u32 salt;
+	bool used;
+	bool crypt;
+	bool rx;
+};
+
+struct nsim_ipsec {
+	struct nsim_sa sa[NSIM_IPSEC_MAX_SA_COUNT];
+	struct dentry *pfile;
+	u32 count;
+	u32 tx;
+	u32 ok;
+};
+
 struct netdevsim {
 	struct net_device *netdev;
 
@@ -67,6 +88,7 @@ struct netdevsim {
 #if IS_ENABLED(CONFIG_NET_DEVLINK)
 	struct devlink *devlink;
 #endif
+	struct nsim_ipsec ipsec;
 };
 
 extern struct dentry *nsim_ddir;
@@ -147,6 +169,25 @@ static inline void nsim_devlink_exit(void)
 }
 #endif
 
+#if IS_ENABLED(CONFIG_XFRM_OFFLOAD)
+void nsim_ipsec_init(struct netdevsim *ns);
+void nsim_ipsec_teardown(struct netdevsim *ns);
+bool nsim_ipsec_tx(struct netdevsim *ns, struct sk_buff *skb);
+#else
+static inline void nsim_ipsec_init(struct netdevsim *ns)
+{
+}
+
+static inline void nsim_ipsec_teardown(struct netdevsim *ns)
+{
+}
+
+static inline bool nsim_ipsec_tx(struct netdevsim *ns, struct sk_buff *skb)
+{
+	return true;
+}
+#endif
+
 static inline struct netdevsim *to_nsim(struct device *ptr)
 {
 	return container_of(ptr, struct netdevsim, dev);
