diff --git a/drivers/net/ethernet/mellanox/mlxsw/spectrum_ipip.c b/drivers/net/ethernet/mellanox/mlxsw/spectrum_ipip.c
index 37a1ad92ac91..ad3926de88f2 100644
--- a/drivers/net/ethernet/mellanox/mlxsw/spectrum_ipip.c
+++ b/drivers/net/ethernet/mellanox/mlxsw/spectrum_ipip.c
@@ -29,23 +29,45 @@ static bool mlxsw_sp_ipip_parms4_has_ikey(const struct ip_tunnel_parm *parms)
 	return !!(parms->i_flags & TUNNEL_KEY);
 }
 
+static bool mlxsw_sp_ipip_parms6_has_ikey(const struct __ip6_tnl_parm *parms)
+{
+	return !!(parms->i_flags & TUNNEL_KEY);
+}
+
 static bool mlxsw_sp_ipip_parms4_has_okey(const struct ip_tunnel_parm *parms)
 {
 	return !!(parms->o_flags & TUNNEL_KEY);
 }
 
+static bool mlxsw_sp_ipip_parms6_has_okey(const struct __ip6_tnl_parm *parms)
+{
+	return !!(parms->o_flags & TUNNEL_KEY);
+}
+
 static u32 mlxsw_sp_ipip_parms4_ikey(const struct ip_tunnel_parm *parms)
 {
 	return mlxsw_sp_ipip_parms4_has_ikey(parms) ?
 		be32_to_cpu(parms->i_key) : 0;
 }
 
+static u32 mlxsw_sp_ipip_parms6_ikey(const struct __ip6_tnl_parm *parms)
+{
+	return mlxsw_sp_ipip_parms6_has_ikey(parms) ?
+		be32_to_cpu(parms->i_key) : 0;
+}
+
 static u32 mlxsw_sp_ipip_parms4_okey(const struct ip_tunnel_parm *parms)
 {
 	return mlxsw_sp_ipip_parms4_has_okey(parms) ?
 		be32_to_cpu(parms->o_key) : 0;
 }
 
+static u32 mlxsw_sp_ipip_parms6_okey(const struct __ip6_tnl_parm *parms)
+{
+	return mlxsw_sp_ipip_parms6_has_okey(parms) ?
+		be32_to_cpu(parms->o_key) : 0;
+}
+
 static union mlxsw_sp_l3addr
 mlxsw_sp_ipip_parms4_saddr(const struct ip_tunnel_parm *parms)
 {
@@ -313,6 +335,19 @@ mlxsw_sp_ipip_ol_netdev_change_gre4(struct mlxsw_sp *mlxsw_sp,
 						  &new_parms, extack);
 }
 
+static int
+mlxsw_sp_ipip_rem_addr_set_gre4(struct mlxsw_sp *mlxsw_sp,
+				struct mlxsw_sp_ipip_entry *ipip_entry)
+{
+	return 0;
+}
+
+static void
+mlxsw_sp_ipip_rem_addr_unset_gre4(struct mlxsw_sp *mlxsw_sp,
+				  const struct mlxsw_sp_ipip_entry *ipip_entry)
+{
+}
+
 static const struct mlxsw_sp_ipip_ops mlxsw_sp_ipip_gre4_ops = {
 	.dev_type = ARPHRD_IPGRE,
 	.ul_proto = MLXSW_SP_L3_PROTO_IPV4,
@@ -323,6 +358,8 @@ static const struct mlxsw_sp_ipip_ops mlxsw_sp_ipip_gre4_ops = {
 	.can_offload = mlxsw_sp_ipip_can_offload_gre4,
 	.ol_loopback_config = mlxsw_sp_ipip_ol_loopback_config_gre4,
 	.ol_netdev_change = mlxsw_sp_ipip_ol_netdev_change_gre4,
+	.rem_ip_addr_set = mlxsw_sp_ipip_rem_addr_set_gre4,
+	.rem_ip_addr_unset = mlxsw_sp_ipip_rem_addr_unset_gre4,
 };
 
 static struct mlxsw_sp_ipip_parms
@@ -377,6 +414,21 @@ mlxsw_sp1_ipip_ol_netdev_change_gre6(struct mlxsw_sp *mlxsw_sp,
 	return -EINVAL;
 }
 
+static int
+mlxsw_sp1_ipip_rem_addr_set_gre6(struct mlxsw_sp *mlxsw_sp,
+				 struct mlxsw_sp_ipip_entry *ipip_entry)
+{
+	WARN_ON_ONCE(1);
+	return -EINVAL;
+}
+
+static void
+mlxsw_sp1_ipip_rem_addr_unset_gre6(struct mlxsw_sp *mlxsw_sp,
+				   const struct mlxsw_sp_ipip_entry *ipip_entry)
+{
+	WARN_ON_ONCE(1);
+}
+
 static const struct mlxsw_sp_ipip_ops mlxsw_sp1_ipip_gre6_ops = {
 	.dev_type = ARPHRD_IP6GRE,
 	.ul_proto = MLXSW_SP_L3_PROTO_IPV6,
@@ -387,6 +439,8 @@ static const struct mlxsw_sp_ipip_ops mlxsw_sp1_ipip_gre6_ops = {
 	.can_offload = mlxsw_sp1_ipip_can_offload_gre6,
 	.ol_loopback_config = mlxsw_sp1_ipip_ol_loopback_config_gre6,
 	.ol_netdev_change = mlxsw_sp1_ipip_ol_netdev_change_gre6,
+	.rem_ip_addr_set = mlxsw_sp1_ipip_rem_addr_set_gre6,
+	.rem_ip_addr_unset = mlxsw_sp1_ipip_rem_addr_unset_gre6,
 };
 
 const struct mlxsw_sp_ipip_ops *mlxsw_sp1_ipip_ops_arr[] = {
@@ -394,9 +448,176 @@ const struct mlxsw_sp_ipip_ops *mlxsw_sp1_ipip_ops_arr[] = {
 	[MLXSW_SP_IPIP_TYPE_GRE6] = &mlxsw_sp1_ipip_gre6_ops,
 };
 
+static struct mlxsw_sp_ipip_parms
+mlxsw_sp2_ipip_netdev_parms_init_gre6(const struct net_device *ol_dev)
+{
+	struct __ip6_tnl_parm parms = mlxsw_sp_ipip_netdev_parms6(ol_dev);
+
+	return (struct mlxsw_sp_ipip_parms) {
+		.proto = MLXSW_SP_L3_PROTO_IPV6,
+		.saddr = mlxsw_sp_ipip_parms6_saddr(&parms),
+		.daddr = mlxsw_sp_ipip_parms6_daddr(&parms),
+		.link = parms.link,
+		.ikey = mlxsw_sp_ipip_parms6_ikey(&parms),
+		.okey = mlxsw_sp_ipip_parms6_okey(&parms),
+	};
+}
+
+static int
+mlxsw_sp2_ipip_nexthop_update_gre6(struct mlxsw_sp *mlxsw_sp, u32 adj_index,
+				   struct mlxsw_sp_ipip_entry *ipip_entry,
+				   bool force, char *ratr_pl)
+{
+	u16 rif_index = mlxsw_sp_ipip_lb_rif_index(ipip_entry->ol_lb);
+	enum mlxsw_reg_ratr_op op;
+
+	op = force ? MLXSW_REG_RATR_OP_WRITE_WRITE_ENTRY :
+		     MLXSW_REG_RATR_OP_WRITE_WRITE_ENTRY_ON_ACTIVITY;
+	mlxsw_reg_ratr_pack(ratr_pl, op, true, MLXSW_REG_RATR_TYPE_IPIP,
+			    adj_index, rif_index);
+	mlxsw_reg_ratr_ipip6_entry_pack(ratr_pl,
+					ipip_entry->dip_kvdl_index);
+
+	return mlxsw_reg_write(mlxsw_sp->core, MLXSW_REG(ratr), ratr_pl);
+}
+
+static int
+mlxsw_sp2_ipip_decap_config_gre6(struct mlxsw_sp *mlxsw_sp,
+				 struct mlxsw_sp_ipip_entry *ipip_entry,
+				 u32 tunnel_index)
+{
+	u16 rif_index = mlxsw_sp_ipip_lb_rif_index(ipip_entry->ol_lb);
+	u16 ul_rif_id = mlxsw_sp_ipip_lb_ul_rif_id(ipip_entry->ol_lb);
+	char rtdp_pl[MLXSW_REG_RTDP_LEN];
+	struct __ip6_tnl_parm parms;
+	unsigned int type_check;
+	bool has_ikey;
+	u32 ikey;
+
+	parms = mlxsw_sp_ipip_netdev_parms6(ipip_entry->ol_dev);
+	has_ikey = mlxsw_sp_ipip_parms6_has_ikey(&parms);
+	ikey = mlxsw_sp_ipip_parms6_ikey(&parms);
+
+	mlxsw_reg_rtdp_pack(rtdp_pl, MLXSW_REG_RTDP_TYPE_IPIP, tunnel_index);
+	mlxsw_reg_rtdp_egress_router_interface_set(rtdp_pl, ul_rif_id);
+
+	type_check = has_ikey ?
+		MLXSW_REG_RTDP_IPIP_TYPE_CHECK_ALLOW_GRE_KEY :
+		MLXSW_REG_RTDP_IPIP_TYPE_CHECK_ALLOW_GRE;
+
+	/* Linux demuxes tunnels based on packet SIP (which must match tunnel
+	 * remote IP). Thus configure decap so that it filters out packets that
+	 * are not IPv6 or have the wrong SIP. IPIP_DECAP_ERROR trap is
+	 * generated for packets that fail this criterion. Linux then handles
+	 * such packets in slow path and generates ICMP destination unreachable.
+	 */
+	mlxsw_reg_rtdp_ipip6_pack(rtdp_pl, rif_index,
+				  MLXSW_REG_RTDP_IPIP_SIP_CHECK_FILTER_IPV6,
+				  type_check, has_ikey,
+				  ipip_entry->dip_kvdl_index, ikey);
+
+	return mlxsw_reg_write(mlxsw_sp->core, MLXSW_REG(rtdp), rtdp_pl);
+}
+
+static bool mlxsw_sp2_ipip_can_offload_gre6(const struct mlxsw_sp *mlxsw_sp,
+					    const struct net_device *ol_dev)
+{
+	struct __ip6_tnl_parm tparm = mlxsw_sp_ipip_netdev_parms6(ol_dev);
+	bool inherit_tos = tparm.flags & IP6_TNL_F_USE_ORIG_TCLASS;
+	bool inherit_ttl = tparm.hop_limit == 0;
+	__be16 okflags = TUNNEL_KEY; /* We can't offload any other features. */
+
+	return (tparm.i_flags & ~okflags) == 0 &&
+	       (tparm.o_flags & ~okflags) == 0 &&
+	       inherit_ttl && inherit_tos &&
+	       mlxsw_sp_ipip_tunnel_complete(MLXSW_SP_L3_PROTO_IPV6, ol_dev);
+}
+
+static struct mlxsw_sp_rif_ipip_lb_config
+mlxsw_sp2_ipip_ol_loopback_config_gre6(struct mlxsw_sp *mlxsw_sp,
+				       const struct net_device *ol_dev)
+{
+	struct __ip6_tnl_parm parms = mlxsw_sp_ipip_netdev_parms6(ol_dev);
+	enum mlxsw_reg_ritr_loopback_ipip_type lb_ipipt;
+
+	lb_ipipt = mlxsw_sp_ipip_parms6_has_okey(&parms) ?
+		MLXSW_REG_RITR_LOOPBACK_IPIP_TYPE_IP_IN_GRE_KEY_IN_IP :
+		MLXSW_REG_RITR_LOOPBACK_IPIP_TYPE_IP_IN_GRE_IN_IP;
+	return (struct mlxsw_sp_rif_ipip_lb_config){
+		.lb_ipipt = lb_ipipt,
+		.okey = mlxsw_sp_ipip_parms6_okey(&parms),
+		.ul_protocol = MLXSW_SP_L3_PROTO_IPV6,
+		.saddr = mlxsw_sp_ipip_netdev_saddr(MLXSW_SP_L3_PROTO_IPV6,
+						    ol_dev),
+	};
+}
+
+static int
+mlxsw_sp2_ipip_ol_netdev_change_gre6(struct mlxsw_sp *mlxsw_sp,
+				     struct mlxsw_sp_ipip_entry *ipip_entry,
+				     struct netlink_ext_ack *extack)
+{
+	struct mlxsw_sp_ipip_parms new_parms;
+
+	new_parms = mlxsw_sp2_ipip_netdev_parms_init_gre6(ipip_entry->ol_dev);
+	return mlxsw_sp_ipip_ol_netdev_change_gre(mlxsw_sp, ipip_entry,
+						  &new_parms, extack);
+}
+
+static int
+mlxsw_sp2_ipip_rem_addr_set_gre6(struct mlxsw_sp *mlxsw_sp,
+				 struct mlxsw_sp_ipip_entry *ipip_entry)
+{
+	char rips_pl[MLXSW_REG_RIPS_LEN];
+	struct __ip6_tnl_parm parms6;
+	int err;
+
+	err = mlxsw_sp_kvdl_alloc(mlxsw_sp,
+				  MLXSW_SP_KVDL_ENTRY_TYPE_IPV6_ADDRESS, 1,
+				  &ipip_entry->dip_kvdl_index);
+	if (err)
+		return err;
+
+	parms6 = mlxsw_sp_ipip_netdev_parms6(ipip_entry->ol_dev);
+	mlxsw_reg_rips_pack(rips_pl, ipip_entry->dip_kvdl_index,
+			    &parms6.raddr);
+	err = mlxsw_reg_write(mlxsw_sp->core, MLXSW_REG(rips), rips_pl);
+	if (err)
+		goto err_rips_write;
+
+	return 0;
+
+err_rips_write:
+	mlxsw_sp_kvdl_free(mlxsw_sp, MLXSW_SP_KVDL_ENTRY_TYPE_IPV6_ADDRESS, 1,
+			   ipip_entry->dip_kvdl_index);
+	return err;
+}
+
+static void
+mlxsw_sp2_ipip_rem_addr_unset_gre6(struct mlxsw_sp *mlxsw_sp,
+				   const struct mlxsw_sp_ipip_entry *ipip_entry)
+{
+	mlxsw_sp_kvdl_free(mlxsw_sp, MLXSW_SP_KVDL_ENTRY_TYPE_IPV6_ADDRESS, 1,
+			   ipip_entry->dip_kvdl_index);
+}
+
+static const struct mlxsw_sp_ipip_ops mlxsw_sp2_ipip_gre6_ops = {
+	.dev_type = ARPHRD_IP6GRE,
+	.ul_proto = MLXSW_SP_L3_PROTO_IPV6,
+	.inc_parsing_depth = true,
+	.parms_init = mlxsw_sp2_ipip_netdev_parms_init_gre6,
+	.nexthop_update = mlxsw_sp2_ipip_nexthop_update_gre6,
+	.decap_config = mlxsw_sp2_ipip_decap_config_gre6,
+	.can_offload = mlxsw_sp2_ipip_can_offload_gre6,
+	.ol_loopback_config = mlxsw_sp2_ipip_ol_loopback_config_gre6,
+	.ol_netdev_change = mlxsw_sp2_ipip_ol_netdev_change_gre6,
+	.rem_ip_addr_set = mlxsw_sp2_ipip_rem_addr_set_gre6,
+	.rem_ip_addr_unset = mlxsw_sp2_ipip_rem_addr_unset_gre6,
+};
+
 const struct mlxsw_sp_ipip_ops *mlxsw_sp2_ipip_ops_arr[] = {
 	[MLXSW_SP_IPIP_TYPE_GRE4] = &mlxsw_sp_ipip_gre4_ops,
-	[MLXSW_SP_IPIP_TYPE_GRE6] = &mlxsw_sp1_ipip_gre6_ops,
+	[MLXSW_SP_IPIP_TYPE_GRE6] = &mlxsw_sp2_ipip_gre6_ops,
 };
 
 static int mlxsw_sp_ipip_ecn_encap_init_one(struct mlxsw_sp *mlxsw_sp,
@@ -461,11 +682,15 @@ mlxsw_sp_ipip_netdev_ul_dev_get(const struct net_device *ol_dev)
 {
 	struct net *net = dev_net(ol_dev);
 	struct ip_tunnel *tun4;
+	struct ip6_tnl *tun6;
 
 	switch (ol_dev->type) {
 	case ARPHRD_IPGRE:
 		tun4 = netdev_priv(ol_dev);
 		return dev_get_by_index_rcu(net, tun4->parms.link);
+	case ARPHRD_IP6GRE:
+		tun6 = netdev_priv(ol_dev);
+		return dev_get_by_index_rcu(net, tun6->parms.link);
 	default:
 		return NULL;
 	}
diff --git a/drivers/net/ethernet/mellanox/mlxsw/spectrum_ipip.h b/drivers/net/ethernet/mellanox/mlxsw/spectrum_ipip.h
index 2444f09d3fb1..8cc259dcc8d0 100644
--- a/drivers/net/ethernet/mellanox/mlxsw/spectrum_ipip.h
+++ b/drivers/net/ethernet/mellanox/mlxsw/spectrum_ipip.h
@@ -7,6 +7,7 @@
 #include "spectrum_router.h"
 #include <net/ip_fib.h>
 #include <linux/if_tunnel.h>
+#include <net/ip6_tunnel.h>
 
 struct ip_tunnel_parm
 mlxsw_sp_ipip_netdev_parms4(const struct net_device *ol_dev);
@@ -41,6 +42,7 @@ struct mlxsw_sp_ipip_entry {
 	struct mlxsw_sp_fib_entry *decap_fib_entry;
 	struct list_head ipip_list_node;
 	struct mlxsw_sp_ipip_parms parms;
+	u32 dip_kvdl_index;
 };
 
 struct mlxsw_sp_ipip_ops {
@@ -70,6 +72,10 @@ struct mlxsw_sp_ipip_ops {
 	int (*ol_netdev_change)(struct mlxsw_sp *mlxsw_sp,
 				struct mlxsw_sp_ipip_entry *ipip_entry,
 				struct netlink_ext_ack *extack);
+	int (*rem_ip_addr_set)(struct mlxsw_sp *mlxsw_sp,
+			       struct mlxsw_sp_ipip_entry *ipip_entry);
+	void (*rem_ip_addr_unset)(struct mlxsw_sp *mlxsw_sp,
+				  const struct mlxsw_sp_ipip_entry *ipip_entry);
 };
 
 extern const struct mlxsw_sp_ipip_ops *mlxsw_sp1_ipip_ops_arr[];
diff --git a/drivers/net/ethernet/mellanox/mlxsw/spectrum_router.c b/drivers/net/ethernet/mellanox/mlxsw/spectrum_router.c
index ed3f308d69cd..1e141b5944cd 100644
--- a/drivers/net/ethernet/mellanox/mlxsw/spectrum_router.c
+++ b/drivers/net/ethernet/mellanox/mlxsw/spectrum_router.c
@@ -1108,6 +1108,7 @@ mlxsw_sp_ipip_entry_alloc(struct mlxsw_sp *mlxsw_sp,
 	const struct mlxsw_sp_ipip_ops *ipip_ops;
 	struct mlxsw_sp_ipip_entry *ipip_entry;
 	struct mlxsw_sp_ipip_entry *ret = NULL;
+	int err;
 
 	ipip_ops = mlxsw_sp->router->ipip_ops_arr[ipipt];
 	ipip_entry = kzalloc(sizeof(*ipip_entry), GFP_KERNEL);
@@ -1124,16 +1125,29 @@ mlxsw_sp_ipip_entry_alloc(struct mlxsw_sp *mlxsw_sp,
 	ipip_entry->ipipt = ipipt;
 	ipip_entry->ol_dev = ol_dev;
 	ipip_entry->parms = ipip_ops->parms_init(ol_dev);
+
+	err = ipip_ops->rem_ip_addr_set(mlxsw_sp, ipip_entry);
+	if (err) {
+		ret = ERR_PTR(err);
+		goto err_rem_ip_addr_set;
+	}
+
 	return ipip_entry;
 
+err_rem_ip_addr_set:
+	mlxsw_sp_rif_destroy(&ipip_entry->ol_lb->common);
 err_ol_ipip_lb_create:
 	kfree(ipip_entry);
 	return ret;
 }
 
-static void
-mlxsw_sp_ipip_entry_dealloc(struct mlxsw_sp_ipip_entry *ipip_entry)
+static void mlxsw_sp_ipip_entry_dealloc(struct mlxsw_sp *mlxsw_sp,
+					struct mlxsw_sp_ipip_entry *ipip_entry)
 {
+	const struct mlxsw_sp_ipip_ops *ipip_ops =
+		mlxsw_sp->router->ipip_ops_arr[ipip_entry->ipipt];
+
+	ipip_ops->rem_ip_addr_unset(mlxsw_sp, ipip_entry);
 	mlxsw_sp_rif_destroy(&ipip_entry->ol_lb->common);
 	kfree(ipip_entry);
 }
@@ -1332,6 +1346,11 @@ mlxsw_sp_ipip_entry_find_decap(struct mlxsw_sp *mlxsw_sp,
 		saddr_len = 4;
 		saddr_prefix_len = 32;
 		break;
+	case MLXSW_SP_L3_PROTO_IPV6:
+		saddrp = &saddr.addr6;
+		saddr_len = 16;
+		saddr_prefix_len = 128;
+		break;
 	default:
 		WARN_ON(1);
 		return NULL;
@@ -1368,7 +1387,7 @@ mlxsw_sp_ipip_entry_destroy(struct mlxsw_sp *mlxsw_sp,
 			    struct mlxsw_sp_ipip_entry *ipip_entry)
 {
 	list_del(&ipip_entry->ipip_list_node);
-	mlxsw_sp_ipip_entry_dealloc(ipip_entry);
+	mlxsw_sp_ipip_entry_dealloc(mlxsw_sp, ipip_entry);
 }
 
 static bool
@@ -1563,6 +1582,7 @@ mlxsw_sp_rif_ipip_lb_op(struct mlxsw_sp_rif_ipip_lb *lb_rif, u16 ul_vr_id,
 	struct mlxsw_sp_rif *rif = &lb_rif->common;
 	struct mlxsw_sp *mlxsw_sp = rif->mlxsw_sp;
 	char ritr_pl[MLXSW_REG_RITR_LEN];
+	struct in6_addr *saddr6;
 	u32 saddr4;
 
 	ipip_options = MLXSW_REG_RITR_LOOPBACK_IPIP_OPTIONS_GRE_KEY_PRESET;
@@ -1578,7 +1598,14 @@ mlxsw_sp_rif_ipip_lb_op(struct mlxsw_sp_rif_ipip_lb *lb_rif, u16 ul_vr_id,
 		break;
 
 	case MLXSW_SP_L3_PROTO_IPV6:
-		return -EAFNOSUPPORT;
+		saddr6 = &lb_cf.saddr.addr6;
+		mlxsw_reg_ritr_pack(ritr_pl, enable, MLXSW_REG_RITR_LOOPBACK_IF,
+				    rif->rif_index, rif->vr_id, rif->dev->mtu);
+		mlxsw_reg_ritr_loopback_ipip6_pack(ritr_pl, lb_cf.lb_ipipt,
+						   ipip_options, ul_vr_id,
+						   ul_rif_id, saddr6,
+						   lb_cf.okey);
+		break;
 	}
 
 	return mlxsw_reg_write(mlxsw_sp->core, MLXSW_REG(ritr), ritr_pl);
@@ -6960,11 +6987,38 @@ mlxsw_sp_fib6_entry_nexthop_del(struct mlxsw_sp *mlxsw_sp,
 	mlxsw_sp_nexthop6_group_update(mlxsw_sp, op_ctx, fib6_entry);
 }
 
-static void mlxsw_sp_fib6_entry_type_set(struct mlxsw_sp *mlxsw_sp,
-					 struct mlxsw_sp_fib_entry *fib_entry,
-					 const struct fib6_info *rt)
+static int
+mlxsw_sp_fib6_entry_type_set_local(struct mlxsw_sp *mlxsw_sp,
+				   struct mlxsw_sp_fib_entry *fib_entry,
+				   const struct fib6_info *rt)
+{
+	struct mlxsw_sp_nexthop_group_info *nhgi = fib_entry->nh_group->nhgi;
+	union mlxsw_sp_l3addr dip = { .addr6 = rt->fib6_dst.addr };
+	int ifindex = nhgi->nexthops[0].ifindex;
+	struct mlxsw_sp_ipip_entry *ipip_entry;
+
+	fib_entry->type = MLXSW_SP_FIB_ENTRY_TYPE_TRAP;
+	ipip_entry = mlxsw_sp_ipip_entry_find_by_decap(mlxsw_sp, ifindex,
+						       MLXSW_SP_L3_PROTO_IPV6,
+						       dip);
+
+	if (ipip_entry && ipip_entry->ol_dev->flags & IFF_UP) {
+		fib_entry->type = MLXSW_SP_FIB_ENTRY_TYPE_IPIP_DECAP;
+		return mlxsw_sp_fib_entry_decap_init(mlxsw_sp, fib_entry,
+						     ipip_entry);
+	}
+
+	return 0;
+}
+
+static int mlxsw_sp_fib6_entry_type_set(struct mlxsw_sp *mlxsw_sp,
+					struct mlxsw_sp_fib_entry *fib_entry,
+					const struct fib6_info *rt)
 {
-	if (rt->fib6_flags & (RTF_LOCAL | RTF_ANYCAST))
+	if (rt->fib6_flags & RTF_LOCAL)
+		return mlxsw_sp_fib6_entry_type_set_local(mlxsw_sp, fib_entry,
+							  rt);
+	if (rt->fib6_flags & RTF_ANYCAST)
 		fib_entry->type = MLXSW_SP_FIB_ENTRY_TYPE_TRAP;
 	else if (rt->fib6_type == RTN_BLACKHOLE)
 		fib_entry->type = MLXSW_SP_FIB_ENTRY_TYPE_BLACKHOLE;
@@ -6974,6 +7028,8 @@ static void mlxsw_sp_fib6_entry_type_set(struct mlxsw_sp *mlxsw_sp,
 		fib_entry->type = MLXSW_SP_FIB_ENTRY_TYPE_REMOTE;
 	else
 		fib_entry->type = MLXSW_SP_FIB_ENTRY_TYPE_LOCAL;
+
+	return 0;
 }
 
 static void
@@ -7031,12 +7087,16 @@ mlxsw_sp_fib6_entry_create(struct mlxsw_sp *mlxsw_sp,
 	if (err)
 		goto err_nexthop_group_vr_link;
 
-	mlxsw_sp_fib6_entry_type_set(mlxsw_sp, fib_entry, rt_arr[0]);
+	err = mlxsw_sp_fib6_entry_type_set(mlxsw_sp, fib_entry, rt_arr[0]);
+	if (err)
+		goto err_fib6_entry_type_set;
 
 	fib_entry->fib_node = fib_node;
 
 	return fib6_entry;
 
+err_fib6_entry_type_set:
+	mlxsw_sp_nexthop_group_vr_unlink(fib_entry->nh_group, fib_node->fib);
 err_nexthop_group_vr_link:
 	mlxsw_sp_nexthop6_group_put(mlxsw_sp, fib_entry);
 err_nexthop6_group_get:
@@ -7055,11 +7115,19 @@ mlxsw_sp_fib6_entry_create(struct mlxsw_sp *mlxsw_sp,
 	return ERR_PTR(err);
 }
 
+static void
+mlxsw_sp_fib6_entry_type_unset(struct mlxsw_sp *mlxsw_sp,
+			       struct mlxsw_sp_fib6_entry *fib6_entry)
+{
+	mlxsw_sp_fib_entry_type_unset(mlxsw_sp, &fib6_entry->common);
+}
+
 static void mlxsw_sp_fib6_entry_destroy(struct mlxsw_sp *mlxsw_sp,
 					struct mlxsw_sp_fib6_entry *fib6_entry)
 {
 	struct mlxsw_sp_fib_node *fib_node = fib6_entry->common.fib_node;
 
+	mlxsw_sp_fib6_entry_type_unset(mlxsw_sp, fib6_entry);
 	mlxsw_sp_nexthop_group_vr_unlink(fib6_entry->common.nh_group,
 					 fib_node->fib);
 	mlxsw_sp_nexthop6_group_put(mlxsw_sp, &fib6_entry->common);
