diff --git a/src/vnet/geneve/geneve.api b/src/vnet/geneve/geneve.api
index 5fad670..4502d89 100644
--- a/src/vnet/geneve/geneve.api
+++ b/src/vnet/geneve/geneve.api
@@ -13,7 +13,7 @@
  * limitations under the License.
  */
 
-option version = "2.0.0";
+option version = "2.1.0";
 
 import "vnet/interface_types.api";
 import "vnet/ethernet/ethernet_types.api";
@@ -21,6 +21,7 @@
 
 define geneve_add_del_tunnel
 {
+  option deprecated="20.06";
   u32 client_index;
   u32 context;
   bool is_add;
@@ -39,6 +40,27 @@
   vl_api_interface_index_t sw_if_index;
 };
 
+define geneve_add_del_tunnel2
+{
+  u32 client_index;
+  u32 context;
+  bool is_add;
+  vl_api_address_t local_address;
+  vl_api_address_t remote_address;
+  vl_api_interface_index_t mcast_sw_if_index;
+  u32 encap_vrf_id;
+  u32 decap_next_index;
+  u32 vni;
+  bool l3_mode;
+};
+
+define geneve_add_del_tunnel2_reply
+{
+  u32 context;
+  i32 retval;
+  vl_api_interface_index_t sw_if_index;
+};
+
 define geneve_tunnel_dump
 {
   u32 client_index;
diff --git a/src/vnet/geneve/geneve.c b/src/vnet/geneve/geneve.c
index 1e04c66..e16616b 100644
--- a/src/vnet/geneve/geneve.c
+++ b/src/vnet/geneve/geneve.c
@@ -81,6 +81,7 @@
 
   s = format (s, "encap-dpo-idx %d ", t->next_dpo.dpoi_index);
   s = format (s, "decap-next-%U ", format_decap_next, t->decap_next_index);
+  s = format (s, "l3-mode %u ", t->l3_mode);
 
   if (PREDICT_FALSE (ip46_address_is_multicast (&t->remote)))
     s = format (s, "mcast-sw-if-idx %d ", t->mcast_sw_if_index);
@@ -105,12 +106,21 @@
   return /* no error */ 0;
 }
 
+static clib_error_t *
+geneve_mac_change (vnet_hw_interface_t * hi,
+		   const u8 * old_address, const u8 * mac_address)
+{
+  l2input_interface_mac_change (hi->sw_if_index, old_address, mac_address);
+  return (NULL);
+}
+
 /* *INDENT-OFF* */
 VNET_DEVICE_CLASS (geneve_device_class, static) = {
   .name = "GENEVE",
   .format_device_name = format_geneve_name,
   .format_tx_trace = format_geneve_encap_trace,
   .admin_up_down_function = geneve_interface_admin_up_down,
+  .mac_addr_change_function = geneve_mac_change,
 };
 /* *INDENT-ON* */
 
@@ -206,8 +216,9 @@
 _(mcast_sw_if_index)                            \
 _(encap_fib_index)                              \
 _(decap_next_index)                             \
-_(local)                                          \
-_(remote)
+_(local)                                        \
+_(remote)					\
+_(l3_mode)
 
 static int
 geneve_rewrite (geneve_tunnel_t * t, bool is_ip6)
@@ -400,39 +411,30 @@
 	hash_set (vxm->geneve4_tunnel_by_key, key4.as_u64, t - vxm->tunnels);
 
       vnet_hw_interface_t *hi;
-      if (vec_len (vxm->free_geneve_tunnel_hw_if_indices) > 0)
+      if (a->l3_mode)
 	{
-	  vnet_interface_main_t *im = &vnm->interface_main;
-	  hw_if_index = vxm->free_geneve_tunnel_hw_if_indices
-	    [vec_len (vxm->free_geneve_tunnel_hw_if_indices) - 1];
-	  _vec_len (vxm->free_geneve_tunnel_hw_if_indices) -= 1;
-
-	  hi = vnet_get_hw_interface (vnm, hw_if_index);
-	  hi->dev_instance = t - vxm->tunnels;
-	  hi->hw_instance = hi->dev_instance;
-
-	  /* clear old stats of freed tunnel before reuse */
-	  sw_if_index = hi->sw_if_index;
-	  vnet_interface_counter_lock (im);
-	  vlib_zero_combined_counter
-	    (&im->combined_sw_if_counters[VNET_INTERFACE_COUNTER_TX],
-	     sw_if_index);
-	  vlib_zero_combined_counter (&im->combined_sw_if_counters
-				      [VNET_INTERFACE_COUNTER_RX],
-				      sw_if_index);
-	  vlib_zero_simple_counter (&im->sw_if_counters
-				    [VNET_INTERFACE_COUNTER_DROP],
-				    sw_if_index);
-	  vnet_interface_counter_unlock (im);
+	  u32 t_idx = t - vxm->tunnels;
+	  u8 address[6] =
+	    { 0xd0, 0x0b, 0xee, 0xd0, (u8) (t_idx >> 8), (u8) t_idx };
+	  clib_error_t *error =
+	    ethernet_register_interface (vnm, geneve_device_class.index,
+					 t_idx,
+					 address, &hw_if_index, 0);
+	  if (error)
+	    {
+	      clib_error_report (error);
+	      return VNET_API_ERROR_INVALID_REGISTRATION;
+	    }
 	}
       else
 	{
 	  hw_if_index = vnet_register_interface
 	    (vnm, geneve_device_class.index, t - vxm->tunnels,
 	     geneve_hw_class.index, t - vxm->tunnels);
-	  hi = vnet_get_hw_interface (vnm, hw_if_index);
 	}
 
+      hi = vnet_get_hw_interface (vnm, hw_if_index);
+
       /* Set geneve tunnel output node */
       u32 encap_index = !is_ip6 ?
 	geneve4_encap_node.index : geneve6_encap_node.index;
@@ -564,7 +566,11 @@
       /* make sure tunnel is removed from l2 bd or xconnect */
       set_int_l2_mode (vxm->vlib_main, vnm, MODE_L3, t->sw_if_index, 0,
 		       L2_BD_PORT_TYPE_NORMAL, 0, 0);
-      vec_add1 (vxm->free_geneve_tunnel_hw_if_indices, t->hw_if_index);
+
+      if (t->l3_mode)
+	ethernet_delete_interface (vnm, t->hw_if_index);
+      else
+	vnet_delete_hw_interface (vnm, t->hw_if_index);
 
       vxm->tunnel_index_by_sw_if_index[t->sw_if_index] = ~0;
 
@@ -651,6 +657,7 @@
   u8 grp_set = 0;
   u8 ipv4_set = 0;
   u8 ipv6_set = 0;
+  u8 l3_mode = 0;
   u32 encap_fib_index = 0;
   u32 mcast_sw_if_index = ~0;
   u32 decap_next_index = GENEVE_INPUT_NEXT_L2_INPUT;
@@ -736,6 +743,10 @@
 	      goto done;
 	    }
 	}
+      else if (unformat (line_input, "l3-mode"))
+	{
+	  l3_mode = 1;
+	}
       else
 	{
 	  error = clib_error_return (0, "parse error: '%U'",
@@ -864,7 +875,7 @@
   .short_help =
   "create geneve tunnel local <local-vtep-addr>"
   " {remote <remote-vtep-addr>|group <mcast-vtep-addr> <intf-name>} vni <nn>"
-  " [encap-vrf-id <nn>] [decap-next [l2|node <name>]] [del]",
+  " [encap-vrf-id <nn>] [decap-next [l2|node <name>]] [l3-mode] [del]",
   .function = geneve_add_del_tunnel_command_fn,
 };
 /* *INDENT-ON* */
diff --git a/src/vnet/geneve/geneve.h b/src/vnet/geneve/geneve.h
index 491ae23..0b962e7 100644
--- a/src/vnet/geneve/geneve.h
+++ b/src/vnet/geneve/geneve.h
@@ -135,6 +135,8 @@
    * The tunnels sibling index on the FIB entry's dependency list.
    */
   u32 sibling_index;
+
+  u8 l3_mode;
 } geneve_tunnel_t;
 
 #define foreach_geneve_input_next        \
@@ -173,9 +175,6 @@
   /* mcast shared info */
   uword *mcast_shared;		/* keyed on mcast ip46 addr */
 
-  /* Free vlib hw_if_indices */
-  u32 *free_geneve_tunnel_hw_if_indices;
-
   /* Mapping from sw_if_index to tunnel index */
   u32 *tunnel_index_by_sw_if_index;
 
@@ -205,6 +204,7 @@
   u32 encap_fib_index;
   u32 decap_next_index;
   u32 vni;
+  u8 l3_mode;
 } vnet_geneve_add_del_tunnel_args_t;
 
 int vnet_geneve_add_del_tunnel
diff --git a/src/vnet/geneve/geneve_api.c b/src/vnet/geneve/geneve_api.c
index 996a7a0..10dafd2 100644
--- a/src/vnet/geneve/geneve_api.c
+++ b/src/vnet/geneve/geneve_api.c
@@ -45,6 +45,7 @@
 #define foreach_vpe_api_msg                             \
 _(SW_INTERFACE_SET_GENEVE_BYPASS, sw_interface_set_geneve_bypass)         \
 _(GENEVE_ADD_DEL_TUNNEL, geneve_add_del_tunnel)                           \
+_(GENEVE_ADD_DEL_TUNNEL2, geneve_add_del_tunnel2)                         \
 _(GENEVE_TUNNEL_DUMP, geneve_tunnel_dump)
 
 static void
@@ -114,6 +115,58 @@
   /* *INDENT-ON* */
 }
 
+static void vl_api_geneve_add_del_tunnel2_t_handler
+  (vl_api_geneve_add_del_tunnel2_t * mp)
+{
+  vl_api_geneve_add_del_tunnel2_reply_t *rmp;
+  int rv = 0;
+  ip4_main_t *im = &ip4_main;
+
+  uword *p = hash_get (im->fib_index_by_table_id, ntohl (mp->encap_vrf_id));
+  if (!p)
+    {
+      rv = VNET_API_ERROR_NO_SUCH_FIB;
+      goto out;
+    }
+
+  vnet_geneve_add_del_tunnel_args_t a = {
+    .is_add = mp->is_add,
+    .is_ip6 = mp->remote_address.af,
+    .mcast_sw_if_index = ntohl (mp->mcast_sw_if_index),
+    .encap_fib_index = p[0],
+    .decap_next_index = ntohl (mp->decap_next_index),
+    .vni = ntohl (mp->vni),
+    .l3_mode = mp->l3_mode,
+  };
+
+  ip_address_decode (&mp->remote_address, &a.remote);
+  ip_address_decode (&mp->local_address, &a.local);
+
+  /* Check src & dst are different */
+  if (ip46_address_cmp (&a.remote, &a.local) == 0)
+    {
+      rv = VNET_API_ERROR_SAME_SRC_DST;
+      goto out;
+    }
+  if (ip46_address_is_multicast (&a.remote) &&
+      !vnet_sw_if_index_is_api_valid (a.mcast_sw_if_index))
+    {
+      rv = VNET_API_ERROR_INVALID_SW_IF_INDEX;
+      goto out;
+    }
+
+  u32 sw_if_index = ~0;
+  rv = vnet_geneve_add_del_tunnel (&a, &sw_if_index);
+
+out:
+  /* *INDENT-OFF* */
+  REPLY_MACRO2(VL_API_GENEVE_ADD_DEL_TUNNEL2_REPLY,
+  ({
+    rmp->sw_if_index = ntohl (sw_if_index);
+  }));
+  /* *INDENT-ON* */
+}
+
 static void send_geneve_tunnel_details
   (geneve_tunnel_t * t, vl_api_registration_t * reg, u32 context)
 {