diff --git a/bgpd/bgp_attr.c b/bgpd/bgp_attr.c
index 70d8ffbcc7..3a3cefda59 100644
--- a/bgpd/bgp_attr.c
+++ b/bgpd/bgp_attr.c
@@ -3390,8 +3390,9 @@ bgp_packet_attribute (struct bgp *bgp, struct peer *peer,
       stream_put_ipv4 (s, attr->extra->aggregator_addr.s_addr);
     }
 
-  if ((afi == AFI_IP || afi == AFI_IP6) &&
-      (safi == SAFI_ENCAP || safi == SAFI_MPLS_VPN))
+  if (((afi == AFI_IP || afi == AFI_IP6) &&
+       (safi == SAFI_ENCAP || safi == SAFI_MPLS_VPN)) ||
+      (afi == AFI_L2VPN && safi == SAFI_EVPN))
     {
 	/* Tunnel Encap attribute */
 	bgp_packet_mpattr_tea(bgp, peer, s, attr, BGP_ATTR_ENCAP);
diff --git a/bgpd/bgp_encap_tlv.c b/bgpd/bgp_encap_tlv.c
index 5c18629aa6..8c5ab8d6f6 100644
--- a/bgpd/bgp_encap_tlv.c
+++ b/bgpd/bgp_encap_tlv.c
@@ -391,8 +391,30 @@ bgp_encap_type_vxlan_to_tlv(
     struct attr				*attr)
 {
     struct attr_extra			*extra = bgp_attr_extra_get(attr);
+    struct bgp_attr_encap_subtlv	*tlv;
+    uint32_t vnid;
 
     extra->encap_tunneltype = BGP_ENCAP_TYPE_VXLAN;
+
+    if(bet == NULL ||!bet->vnid)
+      return;
+    if(extra->encap_subtlvs)
+      XFREE(MTYPE_ENCAP_TLV, extra->encap_subtlvs);
+    tlv = XCALLOC (MTYPE_ENCAP_TLV, sizeof(struct bgp_attr_encap_subtlv)-1+12);
+    tlv->type = 1; /* encapsulation type */
+    tlv->length = 12;
+    if(bet->vnid)
+      {
+        vnid = htonl(bet->vnid | VXLAN_ENCAP_MASK_VNID_VALID);
+        memcpy(&tlv->value, &vnid, 4);
+      }
+    if(bet->mac_address)
+      {
+        char *ptr = (char *)&tlv->value + 4;
+        memcpy( ptr, bet->mac_address, 6);
+      }
+    extra->encap_subtlvs = tlv;
+    return;
 }
 
 void
diff --git a/bgpd/bgp_encap_types.h b/bgpd/bgp_encap_types.h
index 0985446ff2..04c0d2f235 100644
--- a/bgpd/bgp_encap_types.h
+++ b/bgpd/bgp_encap_types.h
@@ -167,10 +167,15 @@ struct bgp_encap_type_mpls_in_ip_tunnel_with_ipsec_transport_mode {
     struct bgp_tea_subtlv_remote_endpoint       st_endpoint;    /* optional */
 };
 
+#define VXLAN_ENCAP_MASK_VNID_VALID 0x80000000
+#define VXLAN_ENCAP_MASK_MAC_VALID  0x40000000
+
 struct bgp_encap_type_vxlan {
     uint32_t					valid_subtlvs;
     struct bgp_tea_subtlv_remote_endpoint       st_endpoint;    /* optional */
-    /* No subtlvs defined in spec? */
+    /* draft-ietf-idr-tunnel-encaps-02 */
+    uint32_t                                    vnid; /* does not include V and M bit */
+    uint8_t                                     *mac_address;   /* optional */
 };
 
 struct bgp_encap_type_nvgre {
diff --git a/bgpd/bgp_route.c b/bgpd/bgp_route.c
index f80c24dcba..8487284edb 100644
--- a/bgpd/bgp_route.c
+++ b/bgpd/bgp_route.c
@@ -68,8 +68,11 @@ Software Foundation, Inc., 59 Temple Place - Suite 330, Boston, MA
 #include "bgpd/rfapi/vnc_import_bgp.h"
 #include "bgpd/rfapi/vnc_export_bgp.h"
 #endif
+#include "bgpd/bgp_encap_types.h"
+#include "bgpd/bgp_encap_tlv.h"
 #include "bgpd/bgp_evpn.h"
 
+
 /* Extern from bgp_dump.c */
 extern const char *bgp_origin_str[];
 extern const char *bgp_origin_long_str[];
@@ -4002,7 +4005,16 @@ bgp_static_update_safi (struct bgp *bgp, struct prefix *p,
   attr.flag |= ATTR_FLAG_BIT (BGP_ATTR_MULTI_EXIT_DISC);
 
   if(afi == AFI_L2VPN)
+    {
       overlay_index_update(&attr, bgp_static->eth_s_id, NULL);
+      if (bgp_static->encap_tunneltype == BGP_ENCAP_TYPE_VXLAN)
+        {
+          struct bgp_encap_type_vxlan bet;
+          memset(&bet, 0, sizeof(struct bgp_encap_type_vxlan));
+          bet.vnid = p->u.prefix_evpn.eth_tag;
+          bgp_encap_type_vxlan_to_tlv(&bet, &attr);
+        }
+    }
   /* Apply route-map. */
   if (bgp_static->rmap.name)
     {
diff --git a/bgpd/bgp_route.h b/bgpd/bgp_route.h
index 243c5afb00..20465fbf00 100644
--- a/bgpd/bgp_route.h
+++ b/bgpd/bgp_route.h
@@ -207,6 +207,7 @@ struct bgp_static
   /* EVPN */
   struct eth_segment_id *eth_s_id;
   char *router_mac;
+  uint16_t   encap_tunneltype;
 };
 
 #define BGP_NEXTHOP_AFI_FROM_NHLEN(nhlen) \