diff --git a/bgpd/bgp_attr.c b/bgpd/bgp_attr.c
index 9a42ea8199..0808b35c6c 100644
--- a/bgpd/bgp_attr.c
+++ b/bgpd/bgp_attr.c
@@ -2911,6 +2911,8 @@ static int bgp_attr_encap(struct bgp_attr_parser_args *args)
 					  args->total);
 	}
 
+	SET_FLAG(attr->flag, ATTR_FLAG_BIT(BGP_ATTR_ENCAP));
+
 	return BGP_ATTR_PARSE_PROCEED;
 
 encap_ignore: