diff --git a/bgpd/bgp_route.c b/bgpd/bgp_route.c
index 40f29dac5c..2595bd1d36 100644
--- a/bgpd/bgp_route.c
+++ b/bgpd/bgp_route.c
@@ -15012,6 +15012,7 @@ uint8_t bgp_distance_apply(const struct prefix *p, struct bgp_path_info *pinfo,
 	struct bgp_distance *bdistance;
 	struct access_list *alist;
 	struct bgp_static *bgp_static;
+	struct bgp_path_info *bpi_ultimate;
 
 	if (!bgp)
 		return 0;
@@ -15021,6 +15022,12 @@ uint8_t bgp_distance_apply(const struct prefix *p, struct bgp_path_info *pinfo,
 	if (pinfo->attr->distance)
 		return pinfo->attr->distance;
 
+	/* get peer origin to calculate appropriate distance */
+	if (pinfo->sub_type == BGP_ROUTE_IMPORTED) {
+		bpi_ultimate = bgp_get_imported_bpi_ultimate(pinfo);
+		peer = bpi_ultimate->peer;
+	}
+
 	/* Check source address.
 	 * Note: for aggregate route, peer can have unspec af type.
 	 */
diff --git a/tests/topotests/bgp_vpnv4_gre/r1/bgpd.conf b/tests/topotests/bgp_vpnv4_gre/r1/bgpd.conf
index 0e2d3a8248..295811bfd0 100644
--- a/tests/topotests/bgp_vpnv4_gre/r1/bgpd.conf
+++ b/tests/topotests/bgp_vpnv4_gre/r1/bgpd.conf
@@ -14,6 +14,7 @@ router bgp 65500 vrf vrf1
  bgp router-id 192.0.2.1
  address-family ipv4 unicast
   redistribute connected
+  distance bgp 21 201 41
   label vpn export 101
   rd vpn export 444:1
   rt vpn both 52:100
diff --git a/tests/topotests/bgp_vpnv4_gre/r1/ipv4_routes.json b/tests/topotests/bgp_vpnv4_gre/r1/ipv4_routes.json
index 5f2732aab0..e57e21bb12 100644
--- a/tests/topotests/bgp_vpnv4_gre/r1/ipv4_routes.json
+++ b/tests/topotests/bgp_vpnv4_gre/r1/ipv4_routes.json
@@ -7,7 +7,7 @@
             "vrfName": "vrf1",
             "selected": true,
             "destSelected": true,
-            "distance": 20,
+            "distance": 201,
             "metric": 0,
             "nexthops": [
                 {