diff --git a/drivers/net/vxlan/vxlan_core.c b/drivers/net/vxlan/vxlan_core.c
index 561fe1b314f5..cef7a9aec24b 100644
--- a/drivers/net/vxlan/vxlan_core.c
+++ b/drivers/net/vxlan/vxlan_core.c
@@ -2341,7 +2341,7 @@ static int encap_bypass_if_local(struct sk_buff *skb, struct net_device *dev,
 				 union vxlan_addr *daddr,
 				 __be16 dst_port, int dst_ifindex, __be32 vni,
 				 struct dst_entry *dst,
-				 u32 rt_flags)
+				 u32 rt_flags, bool localbypass)
 {
 #if IS_ENABLED(CONFIG_IPV6)
 	/* IPv6 rt-flags are checked against RTF_LOCAL, but the value of
@@ -2355,18 +2355,21 @@ static int encap_bypass_if_local(struct sk_buff *skb, struct net_device *dev,
 	    !(rt_flags & (RTCF_BROADCAST | RTCF_MULTICAST))) {
 		struct vxlan_dev *dst_vxlan;
 
-		dst_release(dst);
 		dst_vxlan = vxlan_find_vni(vxlan->net, dst_ifindex, vni,
 					   daddr->sa.sa_family, dst_port,
 					   vxlan->cfg.flags);
-		if (!dst_vxlan) {
+		if (!dst_vxlan && localbypass) {
+			dst_release(dst);
 			dev->stats.tx_errors++;
 			vxlan_vnifilter_count(vxlan, vni, NULL,
 					      VXLAN_VNI_STATS_TX_ERRORS, 0);
 			kfree_skb(skb);
 
 			return -ENOENT;
+		} else if (!dst_vxlan && !localbypass) {
+			return 0;
 		}
+		dst_release(dst);
 		vxlan_encap_bypass(skb, vxlan, dst_vxlan, vni, true);
 		return 1;
 	}
@@ -2393,6 +2396,7 @@ void vxlan_xmit_one(struct sk_buff *skb, struct net_device *dev,
 	int err;
 	u32 flags = vxlan->cfg.flags;
 	bool udp_sum = false;
+	bool localbypass = true;
 	bool xnet = !net_eq(vxlan->net, dev_net(vxlan->dev));
 	__be32 vni = 0;
 #if IS_ENABLED(CONFIG_IPV6)
@@ -2494,9 +2498,11 @@ void vxlan_xmit_one(struct sk_buff *skb, struct net_device *dev,
 
 		if (!info) {
 			/* Bypass encapsulation if the destination is local */
+			localbypass =	!(flags & VXLAN_F_LOCALBYPASS);
 			err = encap_bypass_if_local(skb, dev, vxlan, dst,
 						    dst_port, ifindex, vni,
-						    &rt->dst, rt->rt_flags);
+						    &rt->dst, rt->rt_flags,
+						    localbypass);
 			if (err)
 				goto out_unlock;
 
@@ -2568,10 +2574,10 @@ void vxlan_xmit_one(struct sk_buff *skb, struct net_device *dev,
 
 		if (!info) {
 			u32 rt6i_flags = ((struct rt6_info *)ndst)->rt6i_flags;
-
+			localbypass =  !(flags & VXLAN_F_LOCALBYPASS);
 			err = encap_bypass_if_local(skb, dev, vxlan, dst,
 						    dst_port, ifindex, vni,
-						    ndst, rt6i_flags);
+						    ndst, rt6i_flags, localbypass);
 			if (err)
 				goto out_unlock;
 		}
@@ -3202,6 +3208,7 @@ static const struct nla_policy vxlan_policy[IFLA_VXLAN_MAX + 1] = {
 	[IFLA_VXLAN_TTL_INHERIT]	= { .type = NLA_FLAG },
 	[IFLA_VXLAN_DF]		= { .type = NLA_U8 },
 	[IFLA_VXLAN_VNIFILTER]	= { .type = NLA_U8 },
+	[IFLA_VXLAN_LOCALBYPASS]	= { .type = NLA_U8 },
 };
 
 static int vxlan_validate(struct nlattr *tb[], struct nlattr *data[],
@@ -4011,6 +4018,16 @@ static int vxlan_nl2conf(struct nlattr *tb[], struct nlattr *data[],
 			conf->flags |= VXLAN_F_UDP_ZERO_CSUM_TX;
 	}
 
+	if (data[IFLA_VXLAN_LOCALBYPASS]) {
+		if (changelink) {
+			NL_SET_ERR_MSG_ATTR(extack, tb[IFLA_VXLAN_LOCALBYPASS],
+					    "Cannot change LOCALBYPASS flag");
+			return -EOPNOTSUPP;
+		}
+		if (!nla_get_u8(data[IFLA_VXLAN_LOCALBYPASS]))
+			conf->flags |= VXLAN_F_LOCALBYPASS;
+	}
+
 	if (data[IFLA_VXLAN_UDP_ZERO_CSUM6_TX]) {
 		err = vxlan_nl2flag(conf, data, IFLA_VXLAN_UDP_ZERO_CSUM6_TX,
 				    VXLAN_F_UDP_ZERO_CSUM6_TX, changelink,
@@ -4232,6 +4249,7 @@ static size_t vxlan_get_size(const struct net_device *dev)
 		nla_total_size(sizeof(__u8)) + /* IFLA_VXLAN_UDP_ZERO_CSUM6_RX */
 		nla_total_size(sizeof(__u8)) + /* IFLA_VXLAN_REMCSUM_TX */
 		nla_total_size(sizeof(__u8)) + /* IFLA_VXLAN_REMCSUM_RX */
+		nla_total_size(sizeof(__u8)) + /* IFLA_VXLAN_LOCALBYPASS */
 		0;
 }
 
@@ -4308,7 +4326,9 @@ static int vxlan_fill_info(struct sk_buff *skb, const struct net_device *dev)
 	    nla_put_u8(skb, IFLA_VXLAN_REMCSUM_TX,
 		       !!(vxlan->cfg.flags & VXLAN_F_REMCSUM_TX)) ||
 	    nla_put_u8(skb, IFLA_VXLAN_REMCSUM_RX,
-		       !!(vxlan->cfg.flags & VXLAN_F_REMCSUM_RX)))
+		       !!(vxlan->cfg.flags & VXLAN_F_REMCSUM_RX)) ||
+	    nla_put_u8(skb, IFLA_VXLAN_LOCALBYPASS,
+		       !(vxlan->cfg.flags & VXLAN_F_LOCALBYPASS)))
 		goto nla_put_failure;
 
 	if (nla_put(skb, IFLA_VXLAN_PORT_RANGE, sizeof(ports), &ports))
diff --git a/include/net/vxlan.h b/include/net/vxlan.h
index 20bd7d893e10..0be91ca78d3a 100644
--- a/include/net/vxlan.h
+++ b/include/net/vxlan.h
@@ -328,6 +328,7 @@ struct vxlan_dev {
 #define VXLAN_F_TTL_INHERIT		0x10000
 #define VXLAN_F_VNIFILTER               0x20000
 #define VXLAN_F_MDB			0x40000
+#define VXLAN_F_LOCALBYPASS		0x80000
 
 /* Flags that are used in the receive path. These flags must match in
  * order for a socket to be shareable
@@ -348,7 +349,8 @@ struct vxlan_dev {
 					 VXLAN_F_UDP_ZERO_CSUM6_TX |	\
 					 VXLAN_F_UDP_ZERO_CSUM6_RX |	\
 					 VXLAN_F_COLLECT_METADATA  |	\
-					 VXLAN_F_VNIFILTER)
+					 VXLAN_F_VNIFILTER         |    \
+					 VXLAN_F_LOCALBYPASS)
 
 struct net_device *vxlan_dev_create(struct net *net, const char *name,
 				    u8 name_assign_type, struct vxlan_config *conf);
diff --git a/include/uapi/linux/if_link.h b/include/uapi/linux/if_link.h
index 57ceb788250f..4e3a3d295056 100644
--- a/include/uapi/linux/if_link.h
+++ b/include/uapi/linux/if_link.h
@@ -826,6 +826,7 @@ enum {
 	IFLA_VXLAN_TTL_INHERIT,
 	IFLA_VXLAN_DF,
 	IFLA_VXLAN_VNIFILTER, /* only applicable with COLLECT_METADATA mode */
+	IFLA_VXLAN_LOCALBYPASS,
 	__IFLA_VXLAN_MAX
 };
 #define IFLA_VXLAN_MAX	(__IFLA_VXLAN_MAX - 1)
diff --git a/tools/include/uapi/linux/if_link.h b/tools/include/uapi/linux/if_link.h
index 901d98b865a1..3d9a1fd6f7e7 100644
--- a/tools/include/uapi/linux/if_link.h
+++ b/tools/include/uapi/linux/if_link.h
@@ -747,6 +747,8 @@ enum {
 	IFLA_VXLAN_GPE,
 	IFLA_VXLAN_TTL_INHERIT,
 	IFLA_VXLAN_DF,
+	IFLA_VXLAN_VNIFILTER,
+	IFLA_VXLAN_LOCALBYPASS,
 	__IFLA_VXLAN_MAX
 };
 #define IFLA_VXLAN_MAX	(__IFLA_VXLAN_MAX - 1)
