diff --git a/bgpd/bgp_main.c b/bgpd/bgp_main.c
index 1297eb440e..90ae580bab 100644
--- a/bgpd/bgp_main.c
+++ b/bgpd/bgp_main.c
@@ -511,6 +511,8 @@ int main(int argc, char **argv)
 				 ", bgp@%s:%d", address, bm->port);
 	}
 
+	bgp_if_init();
+
 	frr_config_fork();
 	/* must be called after fork() */
 	bgp_gr_apply_running_config();
diff --git a/bgpd/bgp_mplsvpn.c b/bgpd/bgp_mplsvpn.c
index 2f1cc4dc82..5a039b25bc 100644
--- a/bgpd/bgp_mplsvpn.c
+++ b/bgpd/bgp_mplsvpn.c
@@ -978,6 +978,11 @@ leak_update(struct bgp *to_bgp, struct bgp_dest *bn,
 	new = info_make(ZEBRA_ROUTE_BGP, BGP_ROUTE_IMPORTED, 0,
 			to_bgp->peer_self, new_attr, bn);
 
+	if (source_bpi->peer) {
+		extra = bgp_path_info_extra_get(new);
+		extra->peer_orig = peer_lock(source_bpi->peer);
+	}
+
 	if (nexthop_self_flag)
 		bgp_path_info_set_flag(bn, new, BGP_PATH_ANNC_NH_SELF);
 
diff --git a/bgpd/bgp_nht.c b/bgpd/bgp_nht.c
index 297623365a..b38e5b7a9a 100644
--- a/bgpd/bgp_nht.c
+++ b/bgpd/bgp_nht.c
@@ -61,6 +61,42 @@ static int bgp_isvalid_nexthop(struct bgp_nexthop_cache *bnc)
 		    && bnc->nexthop_num > 0));
 }
 
+static int bgp_isvalid_nexthop_for_ebgp(struct bgp_nexthop_cache *bnc,
+					struct bgp_path_info *path)
+{
+	struct interface *ifp = NULL;
+	struct nexthop *nexthop;
+	struct bgp_interface *iifp;
+	struct peer *peer;
+
+	if (!path->extra || !path->extra->peer_orig)
+		return false;
+
+	peer = path->extra->peer_orig;
+
+	/* only connected ebgp peers are valid */
+	if (peer->sort != BGP_PEER_EBGP || peer->ttl != BGP_DEFAULT_TTL ||
+	    CHECK_FLAG(peer->flags, PEER_FLAG_DISABLE_CONNECTED_CHECK) ||
+	    CHECK_FLAG(peer->bgp->flags, BGP_FLAG_DISABLE_NH_CONNECTED_CHK))
+		return false;
+
+	for (nexthop = bnc->nexthop; nexthop; nexthop = nexthop->next) {
+		if (nexthop->type == NEXTHOP_TYPE_IFINDEX ||
+		    nexthop->type == NEXTHOP_TYPE_IPV4_IFINDEX ||
+		    nexthop->type == NEXTHOP_TYPE_IPV6_IFINDEX) {
+			ifp = if_lookup_by_index(
+				bnc->ifindex ? bnc->ifindex : nexthop->ifindex,
+				bnc->bgp->vrf_id);
+		}
+		if (!ifp)
+			continue;
+		iifp = ifp->info;
+		if (CHECK_FLAG(iifp->flags, BGP_INTERFACE_MPLS_BGP_FORWARDING))
+			return true;
+	}
+	return false;
+}
+
 static int bgp_isvalid_nexthop_for_mplsovergre(struct bgp_nexthop_cache *bnc,
 					       struct bgp_path_info *path)
 {
@@ -105,6 +141,7 @@ static int bgp_isvalid_nexthop_for_mpls(struct bgp_nexthop_cache *bnc,
 		(bnc && (bnc->nexthop_num > 0 &&
 			 (CHECK_FLAG(bnc->flags, BGP_NEXTHOP_LABELED_VALID) ||
 			  bnc->bgp->srv6_enabled ||
+			  bgp_isvalid_nexthop_for_ebgp(bnc, path) ||
 			  bgp_isvalid_nexthop_for_mplsovergre(bnc, path)))));
 }
 
diff --git a/bgpd/bgp_route.c b/bgpd/bgp_route.c
index f042d0bd95..b2bd38cbb3 100644
--- a/bgpd/bgp_route.c
+++ b/bgpd/bgp_route.c
@@ -255,6 +255,9 @@ void bgp_path_info_extra_free(struct bgp_path_info_extra **extra)
 	if (e->bgp_orig)
 		bgp_unlock(e->bgp_orig);
 
+	if (e->peer_orig)
+		peer_unlock(e->peer_orig);
+
 	if (e->aggr_suppressors)
 		list_delete(&e->aggr_suppressors);
 
diff --git a/bgpd/bgp_route.h b/bgpd/bgp_route.h
index 3e46c7043e..ddef4ca1bb 100644
--- a/bgpd/bgp_route.h
+++ b/bgpd/bgp_route.h
@@ -235,6 +235,12 @@ struct bgp_path_info_extra {
 	 */
 	struct bgp *bgp_orig;
 
+	/*
+	 * Original bgp session to know if the session is a
+	 * connected EBGP session or not
+	 */
+	struct peer *peer_orig;
+
 	/*
 	 * Nexthop in context of original bgp instance. Needed
 	 * for label resolution of core mpls routes exported to a vrf.
diff --git a/bgpd/bgp_vty.c b/bgpd/bgp_vty.c
index 881426d9c4..b03565fe4c 100644
--- a/bgpd/bgp_vty.c
+++ b/bgpd/bgp_vty.c
@@ -53,6 +53,7 @@
 #include "bgpd/bgp_debug.h"
 #include "bgpd/bgp_errors.h"
 #include "bgpd/bgp_fsm.h"
+#include "bgpd/bgp_nht.h"
 #include "bgpd/bgp_nexthop.h"
 #include "bgpd/bgp_network.h"
 #include "bgpd/bgp_open.h"
@@ -18124,6 +18125,84 @@ static void bgp_config_end(void)
 			 bgp_post_config_delay, &t_bgp_cfg);
 }
 
+static int config_write_interface_one(struct vty *vty, struct vrf *vrf)
+{
+	int write = 0;
+	struct interface *ifp;
+	struct bgp_interface *iifp;
+
+	FOR_ALL_INTERFACES (vrf, ifp) {
+		iifp = ifp->info;
+		if (!iifp)
+			continue;
+
+		if_vty_config_start(vty, ifp);
+
+		if (CHECK_FLAG(iifp->flags,
+			       BGP_INTERFACE_MPLS_BGP_FORWARDING)) {
+			vty_out(vty, " mpls bgp forwarding\n");
+			write++;
+		}
+
+		if_vty_config_end(vty);
+	}
+
+	return write;
+}
+
+/* Configuration write function for bgpd. */
+static int config_write_interface(struct vty *vty)
+{
+	int write = 0;
+	struct vrf *vrf = NULL;
+
+	/* Display all VRF aware OSPF interface configuration */
+	RB_FOREACH (vrf, vrf_name_head, &vrfs_by_name) {
+		write += config_write_interface_one(vty, vrf);
+	}
+
+	return write;
+}
+
+DEFPY(mpls_bgp_forwarding, mpls_bgp_forwarding_cmd,
+      "[no$no] mpls bgp forwarding",
+      NO_STR MPLS_STR BGP_STR
+      "Enable MPLS forwarding for eBGP directly connected peers\n")
+{
+	bool check;
+	struct bgp_interface *iifp;
+
+	VTY_DECLVAR_CONTEXT(interface, ifp);
+	iifp = ifp->info;
+	if (!iifp) {
+		vty_out(vty, "Interface %s not available\n", ifp->name);
+		return CMD_WARNING_CONFIG_FAILED;
+	}
+	check = CHECK_FLAG(iifp->flags, BGP_INTERFACE_MPLS_BGP_FORWARDING);
+	if (check != !no) {
+		if (no)
+			UNSET_FLAG(iifp->flags,
+				   BGP_INTERFACE_MPLS_BGP_FORWARDING);
+		else
+			SET_FLAG(iifp->flags,
+				 BGP_INTERFACE_MPLS_BGP_FORWARDING);
+		/* trigger a nht update on eBGP sessions */
+		if (if_is_operative(ifp))
+			bgp_nht_ifp_up(ifp);
+	}
+	return CMD_SUCCESS;
+}
+
+/* Initialization of BGP interface. */
+static void bgp_vty_if_init(void)
+{
+	/* Install interface node. */
+	if_cmd_init(config_write_interface);
+
+	/* "mpls bgp forwarding" commands. */
+	install_element(INTERFACE_NODE, &mpls_bgp_forwarding_cmd);
+}
+
 void bgp_vty_init(void)
 {
 	cmd_variable_handler_register(bgp_var_neighbor);
@@ -19581,6 +19660,8 @@ void bgp_vty_init(void)
 	install_element(BGP_SRV6_NODE, &no_bgp_srv6_locator_cmd);
 	install_element(BGP_IPV4_NODE, &af_sid_vpn_export_cmd);
 	install_element(BGP_IPV6_NODE, &af_sid_vpn_export_cmd);
+
+	bgp_vty_if_init();
 }
 
 #include "memory.h"
diff --git a/bgpd/bgp_zebra.c b/bgpd/bgp_zebra.c
index 85e25b88a4..7dfb5046dd 100644
--- a/bgpd/bgp_zebra.c
+++ b/bgpd/bgp_zebra.c
@@ -75,6 +75,8 @@ struct zclient *zclient = NULL;
 DEFINE_HOOK(bgp_vrf_status_changed, (struct bgp *bgp, struct interface *ifp),
 	    (bgp, ifp));
 
+DEFINE_MTYPE_STATIC(BGPD, BGP_IF_INFO, "BGP interface context");
+
 /* Can we install into zebra? */
 static inline bool bgp_install_info_to_zebra(struct bgp *bgp)
 {
@@ -3335,6 +3337,31 @@ static zclient_handler *const bgp_handlers[] = {
 		bgp_zebra_process_srv6_locator_chunk,
 };
 
+static int bgp_if_new_hook(struct interface *ifp)
+{
+	struct bgp_interface *iifp;
+
+	if (ifp->info)
+		return 0;
+	iifp = XCALLOC(MTYPE_BGP_IF_INFO, sizeof(struct bgp_interface));
+	ifp->info = iifp;
+
+	return 0;
+}
+
+static int bgp_if_delete_hook(struct interface *ifp)
+{
+	XFREE(MTYPE_BGP_IF_INFO, ifp->info);
+	return 0;
+}
+
+void bgp_if_init(void)
+{
+	/* Initialize Zebra interface data structure. */
+	hook_register_prio(if_add, 0, bgp_if_new_hook);
+	hook_register_prio(if_del, 0, bgp_if_delete_hook);
+}
+
 void bgp_zebra_init(struct thread_master *master, unsigned short instance)
 {
 	zclient_num_connects = 0;
diff --git a/bgpd/bgp_zebra.h b/bgpd/bgp_zebra.h
index 17f46e49cc..0a41069411 100644
--- a/bgpd/bgp_zebra.h
+++ b/bgpd/bgp_zebra.h
@@ -35,6 +35,7 @@
 
 extern void bgp_zebra_init(struct thread_master *master,
 			   unsigned short instance);
+extern void bgp_if_init(void);
 extern void bgp_zebra_init_tm_connect(struct bgp *bgp);
 extern uint32_t bgp_zebra_tm_get_id(void);
 extern bool bgp_zebra_tm_chunk_obtained(void);
diff --git a/bgpd/bgpd.h b/bgpd/bgpd.h
index 1d04ccee42..3161dd4c43 100644
--- a/bgpd/bgpd.h
+++ b/bgpd/bgpd.h
@@ -778,6 +778,11 @@ struct bgp {
 };
 DECLARE_QOBJ_TYPE(bgp);
 
+struct bgp_interface {
+#define BGP_INTERFACE_MPLS_BGP_FORWARDING (1 << 0)
+	uint32_t flags;
+};
+
 DECLARE_HOOK(bgp_inst_delete, (struct bgp *bgp), (bgp));
 DECLARE_HOOK(bgp_inst_config_write,
 		(struct bgp *bgp, struct vty *vty),
diff --git a/doc/user/bgp.rst b/doc/user/bgp.rst
index 905c9861b3..bd5767beba 100644
--- a/doc/user/bgp.rst
+++ b/doc/user/bgp.rst
@@ -2867,6 +2867,13 @@ added for all routes from the CPEs. Routes are validated and prevented from
 being sent back to the same CPE (e.g.: multi-site). This is especially needed
 when using ``as-override`` or ``allowas-in`` to prevent routing loops.
 
+.. clicmd:: mpls bgp forwarding
+
+It is possible to permit BGP install VPN prefixes without transport labels,
+by issuing the following command under the interface configuration context.
+This configuration will install VPN prefixes originated from an e-bgp session,
+and with the next-hop directly connected.
+
 .. _bgp-l3vpn-srv6:
 
 L3VPN SRv6
diff --git a/vtysh/vtysh.h b/vtysh/vtysh.h
index 1f02efee20..68841e2d38 100644
--- a/vtysh/vtysh.h
+++ b/vtysh/vtysh.h
@@ -60,8 +60,13 @@ extern struct thread_master *master;
 #define VTYSH_ALL        VTYSH_ZEBRA|VTYSH_RIPD|VTYSH_RIPNGD|VTYSH_OSPFD|VTYSH_OSPF6D|VTYSH_LDPD|VTYSH_BGPD|VTYSH_ISISD|VTYSH_PIMD|VTYSH_PIM6D|VTYSH_NHRPD|VTYSH_EIGRPD|VTYSH_BABELD|VTYSH_SHARPD|VTYSH_PBRD|VTYSH_STATICD|VTYSH_BFDD|VTYSH_FABRICD|VTYSH_VRRPD|VTYSH_PATHD
 #define VTYSH_ACL         VTYSH_BFDD|VTYSH_BABELD|VTYSH_BGPD|VTYSH_EIGRPD|VTYSH_ISISD|VTYSH_FABRICD|VTYSH_LDPD|VTYSH_NHRPD|VTYSH_OSPF6D|VTYSH_OSPFD|VTYSH_PBRD|VTYSH_PIMD|VTYSH_PIM6D|VTYSH_RIPD|VTYSH_RIPNGD|VTYSH_VRRPD|VTYSH_ZEBRA
 #define VTYSH_RMAP       VTYSH_ZEBRA|VTYSH_RIPD|VTYSH_RIPNGD|VTYSH_OSPFD|VTYSH_OSPF6D|VTYSH_BGPD|VTYSH_ISISD|VTYSH_PIMD|VTYSH_PIM6D|VTYSH_EIGRPD|VTYSH_FABRICD
-#define VTYSH_INTERFACE          VTYSH_ZEBRA|VTYSH_RIPD|VTYSH_RIPNGD|VTYSH_OSPFD|VTYSH_OSPF6D|VTYSH_ISISD|VTYSH_PIMD|VTYSH_PIM6D|VTYSH_NHRPD|VTYSH_EIGRPD|VTYSH_BABELD|VTYSH_PBRD|VTYSH_FABRICD|VTYSH_VRRPD
-#define VTYSH_VRF	  VTYSH_INTERFACE|VTYSH_STATICD
+#define VTYSH_INTERFACE_SUBSET                                                 \
+	VTYSH_ZEBRA | VTYSH_RIPD | VTYSH_RIPNGD | VTYSH_OSPFD | VTYSH_OSPF6D | \
+		VTYSH_ISISD | VTYSH_PIMD | VTYSH_PIM6D | VTYSH_NHRPD |         \
+		VTYSH_EIGRPD | VTYSH_BABELD | VTYSH_PBRD | VTYSH_FABRICD |     \
+		VTYSH_VRRPD
+#define VTYSH_INTERFACE VTYSH_INTERFACE_SUBSET | VTYSH_BGPD
+#define VTYSH_VRF VTYSH_INTERFACE_SUBSET | VTYSH_STATICD
 #define VTYSH_KEYS VTYSH_RIPD | VTYSH_EIGRPD | VTYSH_OSPF6D
 /* Daemons who can process nexthop-group configs */
 #define VTYSH_NH_GROUP    VTYSH_PBRD|VTYSH_SHARPD