diff --git a/zebra/zebra_nhg.c b/zebra/zebra_nhg.c
index 0bca00ced3..d0d3c38a22 100644
--- a/zebra/zebra_nhg.c
+++ b/zebra/zebra_nhg.c
@@ -44,6 +44,7 @@
 #include "zebra/interface.h"
 #include "zebra/zapi_msg.h"
 #include "zebra/rib.h"
+#include "zebra/zebra_vxlan.h"
 
 DEFINE_MTYPE_STATIC(ZEBRA, NHG, "Nexthop Group Entry");
 DEFINE_MTYPE_STATIC(ZEBRA, NHG_CONNECTED, "Nexthop Group Connected");
@@ -1922,10 +1923,42 @@ static bool nexthop_valid_resolve(const struct nexthop *nexthop,
 }
 
 /*
- * When resolving a recursive nexthop, capture backup nexthop(s) also
- * so they can be conveyed through the dataplane to the FIB. We'll look
- * at the backups in the resolving nh 'nexthop' and its nhe, and copy them
- * into the route's resolved nh 'resolved' and its nhe 'nhe'.
+ * Downstream VNI and Single VXlan device check.
+ *
+ * If it has nexthop VNI labels at this point it must be D-VNI allocated
+ * and all the nexthops have to be on an SVD.
+ *
+ * If SVD is not available, mark as inactive.
+ */
+static bool nexthop_set_evpn_dvni_svd(vrf_id_t re_vrf_id,
+				      struct nexthop *nexthop)
+{
+	if (!is_vrf_l3vni_svd_backed(re_vrf_id)) {
+		if (IS_ZEBRA_DEBUG_NHG_DETAIL) {
+			struct vrf *vrf = vrf_lookup_by_id(re_vrf_id);
+
+			zlog_debug(
+				"nexthop %pNHv D-VNI but route's vrf %s(%u) doesn't use SVD",
+				nexthop, VRF_LOGNAME(vrf), re_vrf_id);
+		}
+
+		return false;
+	}
+
+	nexthop->ifindex = get_l3vni_vxlan_ifindex(re_vrf_id);
+	nexthop->vrf_id = 0;
+
+	if (IS_ZEBRA_DEBUG_NHG_DETAIL)
+		zlog_debug("nexthop %pNHv using SVD", nexthop);
+
+	return true;
+}
+
+/*
+ * Given a nexthop we need to properly recursively resolve
+ * the route.  As such, do a table lookup to find and match
+ * if at all possible.  Set the nexthop->ifindex and resolved_id
+ * as appropriate
  */
 static int resolve_backup_nexthops(const struct nexthop *nexthop,
 				   const struct nhg_hash_entry *nhe,
@@ -2195,6 +2228,12 @@ static int nexthop_active(struct nexthop *nexthop, struct nhg_hash_entry *nhe,
 	 * sure the nexthop's interface is known and is operational.
 	 */
 	if (CHECK_FLAG(nexthop->flags, NEXTHOP_FLAG_ONLINK)) {
+		/* DVNI/SVD Checks for EVPN routes */
+		if (nexthop->nh_label &&
+		    nexthop->nh_label_type == ZEBRA_LSP_EVPN &&
+		    !nexthop_set_evpn_dvni_svd(vrf_id, nexthop))
+			return 0;
+
 		ifp = if_lookup_by_index(nexthop->ifindex, nexthop->vrf_id);
 		if (!ifp) {
 			if (IS_ZEBRA_DEBUG_RIB_DETAILED)
@@ -2706,6 +2745,47 @@ done:
 	return valid;
 }
 
+/* Checks if the first nexthop is EVPN. If not, early return.
+ *
+ * This is used to determine if there is a mismatch between l3VNI
+ * of the route's vrf and the nexthops in use's VNI labels.
+ *
+ * If there is a mismatch, we keep the labels as these MUST be DVNI nexthops.
+ *
+ * IF there is no mismatch, we remove the labels and handle the routes as
+ * we have traditionally with evpn.
+ */
+static bool nexthop_list_set_evpn_dvni(struct route_entry *re,
+				       struct nexthop_group *nhg)
+{
+	struct nexthop *nexthop;
+	vni_t re_vrf_vni;
+	vni_t nh_vni;
+	bool use_dvni = false;
+
+	nexthop = nhg->nexthop;
+
+	if (!nexthop->nh_label || nexthop->nh_label_type != ZEBRA_LSP_EVPN)
+		return false;
+
+	re_vrf_vni = get_l3vni_vni(re->vrf_id);
+
+	for (; nexthop; nexthop = nexthop->next) {
+		nh_vni = label2vni(&nexthop->nh_label->label[0]);
+
+		if (nh_vni != re_vrf_vni)
+			use_dvni = true;
+	}
+
+	/* Using traditional way, no VNI encap - remove labels */
+	if (!use_dvni) {
+		for (nexthop = nhg->nexthop; nexthop; nexthop = nexthop->next)
+			nexthop_del_labels(nexthop);
+	}
+
+	return use_dvni;
+}
+
 /*
  * Process a list of nexthops, given an nhe, determining
  * whether each one is ACTIVE/installable at this time.
@@ -2721,12 +2801,16 @@ static uint32_t nexthop_list_active_update(struct route_node *rn,
 	uint32_t counter = 0;
 	struct nexthop *nexthop;
 	struct nexthop_group *nhg = &nhe->nhg;
+	bool vni_removed = false;
 
 	nexthop = nhg->nexthop;
 
 	/* Init recursive nh mtu */
 	re->nexthop_mtu = 0;
 
+	/* Handler for dvni evpn nexthops. Has to be done at nhg level */
+	vni_removed = !nexthop_list_set_evpn_dvni(re, nhg);
+
 	/* Process nexthops one-by-one */
 	for ( ; nexthop; nexthop = nexthop->next) {
 
@@ -2773,7 +2857,8 @@ static uint32_t nexthop_list_active_update(struct route_node *rn,
 			 && nexthop->type < NEXTHOP_TYPE_BLACKHOLE)
 			&& !(IPV6_ADDR_SAME(&prev_src.ipv6,
 					    &nexthop->rmap_src.ipv6)))
-		    || CHECK_FLAG(re->status, ROUTE_ENTRY_LABELS_CHANGED))
+		    || CHECK_FLAG(re->status, ROUTE_ENTRY_LABELS_CHANGED)
+		    || vni_removed)
 			SET_FLAG(re->status, ROUTE_ENTRY_CHANGED);
 	}