diff --git a/lib/librte_gso/Makefile b/lib/librte_gso/Makefile
index 2be64d1..e6d41df 100644
--- a/lib/librte_gso/Makefile
+++ b/lib/librte_gso/Makefile
@@ -44,6 +44,7 @@ LIBABIVER := 1
 SRCS-$(CONFIG_RTE_LIBRTE_GSO) += rte_gso.c
 SRCS-$(CONFIG_RTE_LIBRTE_GSO) += gso_common.c
 SRCS-$(CONFIG_RTE_LIBRTE_GSO) += gso_tcp4.c
+SRCS-$(CONFIG_RTE_LIBRTE_GSO) += gso_tunnel_tcp4.c
 
 # install this header file
 SYMLINK-$(CONFIG_RTE_LIBRTE_GSO)-include += rte_gso.h
diff --git a/lib/librte_gso/gso_common.c b/lib/librte_gso/gso_common.c
index 7c32e03..c6779d0 100644
--- a/lib/librte_gso/gso_common.c
+++ b/lib/librte_gso/gso_common.c
@@ -39,6 +39,7 @@
 #include <rte_ether.h>
 #include <rte_ip.h>
 #include <rte_tcp.h>
+#include <rte_udp.h>
 
 #include "gso_common.h"
 
@@ -193,10 +194,55 @@ update_inner_tcp4_header(struct rte_mbuf *pkt, uint8_t ipid_delta,
 	}
 }
 
+static inline void
+update_outer_ipv4_header(struct rte_mbuf *pkt, uint16_t id)
+{
+	struct ipv4_hdr *ipv4_hdr;
+
+	ipv4_hdr = (struct ipv4_hdr *)(rte_pktmbuf_mtod(pkt, char *) +
+			pkt->outer_l2_len);
+	ipv4_hdr->total_length = rte_cpu_to_be_16(pkt->pkt_len -
+			pkt->outer_l2_len);
+	ipv4_hdr->packet_id = rte_cpu_to_be_16(id);
+}
+
+static inline void
+update_outer_udp_header(struct rte_mbuf *pkt)
+{
+	struct udp_hdr *udp_hdr;
+	uint16_t length;
+
+	length = pkt->outer_l2_len + pkt->outer_l3_len;
+	udp_hdr = (struct udp_hdr *)(rte_pktmbuf_mtod(pkt, char *) +
+			length);
+	udp_hdr->dgram_len = rte_cpu_to_be_16(pkt->pkt_len - length);
+}
+
+static inline void
+update_ipv4_vxlan_tcp4_header(struct rte_mbuf *pkt, uint8_t ipid_delta,
+		struct rte_mbuf **segs, uint16_t nb_segs)
+{
+	struct ipv4_hdr *ipv4_hdr;
+	uint16_t i, id;
+
+	ipv4_hdr = (struct ipv4_hdr *)(rte_pktmbuf_mtod(pkt, char *) +
+			pkt->outer_l2_len);
+	id = rte_be_to_cpu_16(ipv4_hdr->packet_id);
+	for (i = 0; i < nb_segs; i++) {
+		update_outer_ipv4_header(segs[i], id);
+		id += ipid_delta;
+		update_outer_udp_header(segs[i]);
+	}
+	/* Update inner TCP/IPv4 headers */
+	update_inner_tcp4_header(pkt, ipid_delta, segs, nb_segs);
+}
+
 void
 gso_update_pkt_headers(struct rte_mbuf *pkt, uint8_t ipid_delta,
 		struct rte_mbuf **segs, uint16_t nb_segs)
 {
-	if (is_ipv4_tcp(pkt->packet_type))
+	if (is_ipv4_vxlan_ipv4_tcp(pkt->packet_type))
+		update_ipv4_vxlan_tcp4_header(pkt, ipid_delta, segs, nb_segs);
+	else if (is_ipv4_tcp(pkt->packet_type))
 		update_inner_tcp4_header(pkt, ipid_delta, segs, nb_segs);
 }
diff --git a/lib/librte_gso/gso_common.h b/lib/librte_gso/gso_common.h
index 3c76520..2377a1d 100644
--- a/lib/librte_gso/gso_common.h
+++ b/lib/librte_gso/gso_common.h
@@ -56,6 +56,39 @@ static inline uint8_t is_ipv4_tcp(uint32_t ptype)
 	}
 }
 
+#define IS_INNER_IPV4_HDR(ptype) (((ptype) == RTE_PTYPE_INNER_L3_IPV4) | \
+			((ptype) == RTE_PTYPE_INNER_L3_IPV4_EXT) | \
+			((ptype) == RTE_PTYPE_INNER_L3_IPV4_EXT_UNKNOWN))
+
+#define ETHER_UDP_VXLAN_ETHER_TCP_PKT (RTE_PTYPE_L2_ETHER | \
+		RTE_PTYPE_L4_UDP | RTE_PTYPE_TUNNEL_VXLAN | \
+		RTE_PTYPE_INNER_L2_ETHER | RTE_PTYPE_INNER_L4_TCP)
+#define ETHER_VLAN_UDP_VXLAN_ETHER_TCP_PKT (RTE_PTYPE_L2_ETHER_VLAN | \
+		RTE_PTYPE_L4_UDP | RTE_PTYPE_TUNNEL_VXLAN | \
+		RTE_PTYPE_INNER_L2_ETHER | RTE_PTYPE_INNER_L4_TCP)
+#define ETHER_UDP_VXLAN_ETHER_VLAN_TCP_PKT (RTE_PTYPE_L2_ETHER | \
+		RTE_PTYPE_L4_UDP | RTE_PTYPE_TUNNEL_VXLAN | \
+		RTE_PTYPE_INNER_L2_ETHER_VLAN | RTE_PTYPE_INNER_L4_TCP)
+#define ETHER_VLAN_UDP_VXLAN_ETHER_VLAN_TCP_PKT (RTE_PTYPE_L2_ETHER_VLAN | \
+		RTE_PTYPE_L4_UDP | RTE_PTYPE_TUNNEL_VXLAN | \
+		RTE_PTYPE_INNER_L2_ETHER_VLAN | RTE_PTYPE_INNER_L4_TCP)
+static inline uint8_t is_ipv4_vxlan_ipv4_tcp(uint32_t ptype)
+{
+	uint32_t type;
+
+	type = ptype & (~(RTE_PTYPE_L3_MASK | RTE_PTYPE_INNER_L3_MASK));
+	switch (type) {
+	case ETHER_UDP_VXLAN_ETHER_TCP_PKT:
+	case ETHER_VLAN_UDP_VXLAN_ETHER_TCP_PKT:
+	case ETHER_UDP_VXLAN_ETHER_VLAN_TCP_PKT:
+	case ETHER_VLAN_UDP_VXLAN_ETHER_VLAN_TCP_PKT:
+		return (RTE_ETH_IS_IPV4_HDR(ptype) > 0) ?
+			IS_INNER_IPV4_HDR(ptype & RTE_PTYPE_INNER_L3_MASK) : 0;
+	default:
+		return 0;
+	}
+}
+
 /**
  * Internal function which updates relevant packet headers, following
  * segmentation. This is required to update, for example, the IPv4
diff --git a/lib/librte_gso/gso_tunnel_tcp4.c b/lib/librte_gso/gso_tunnel_tcp4.c
new file mode 100644
index 0000000..8ca52d1
--- /dev/null
+++ b/lib/librte_gso/gso_tunnel_tcp4.c
@@ -0,0 +1,85 @@
+/*-
+ *   BSD LICENSE
+ *
+ *   Copyright(c) 2017 Intel Corporation. All rights reserved.
+ *   All rights reserved.
+ *
+ *   Redistribution and use in source and binary forms, with or without
+ *   modification, are permitted provided that the following conditions
+ *   are met:
+ *
+ *     * Redistributions of source code must retain the above copyright
+ *       notice, this list of conditions and the following disclaimer.
+ *     * Redistributions in binary form must reproduce the above copyright
+ *       notice, this list of conditions and the following disclaimer in
+ *       the documentation and/or other materials provided with the
+ *       distribution.
+ *     * Neither the name of Intel Corporation nor the names of its
+ *       contributors may be used to endorse or promote products derived
+ *       from this software without specific prior written permission.
+ *
+ *   THIS SOFTWARE IS PROVIDED BY THE COPYRIGHT HOLDERS AND CONTRIBUTORS
+ *   "AS IS" AND ANY EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT
+ *   LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR
+ *   A PARTICULAR PURPOSE ARE DISCLAIMED. IN NO EVENT SHALL THE COPYRIGHT
+ *   OWNER OR CONTRIBUTORS BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL,
+ *   SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT
+ *   LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES; LOSS OF USE,
+ *   DATA, OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND ON ANY
+ *   THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT
+ *   (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE USE
+ *   OF THIS SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
+ */
+
+#include <rte_ether.h>
+#include <rte_ip.h>
+
+#include "gso_common.h"
+#include "gso_tunnel_tcp4.h"
+
+int
+gso_tunnel_tcp4_segment(struct rte_mbuf *pkt,
+		uint16_t gso_size,
+		uint8_t ipid_delta,
+		struct rte_mempool *direct_pool,
+		struct rte_mempool *indirect_pool,
+		struct rte_mbuf **pkts_out,
+		uint16_t nb_pkts_out)
+{
+	struct ipv4_hdr *inner_ipv4_hdr;
+	uint16_t pyld_unit_size, hdr_offset;
+	uint16_t tcp_dl;
+	int ret = 1;
+
+	hdr_offset = pkt->outer_l2_len + pkt->outer_l3_len + pkt->l2_len;
+	inner_ipv4_hdr = (struct ipv4_hdr *)(rte_pktmbuf_mtod(pkt, char *) +
+			hdr_offset);
+	/*
+	 * Don't process the packet whose DF bit of the inner IPv4
+	 * header isn't set.
+	 */
+	if (unlikely((inner_ipv4_hdr->fragment_offset & rte_cpu_to_be_16(
+						IPV4_HDR_DF_MASK)) == 0)) {
+		pkts_out[0] = pkt;
+		return ret;
+	}
+
+	tcp_dl = rte_be_to_cpu_16(inner_ipv4_hdr->total_length) -
+		pkt->l3_len - pkt->l4_len;
+	/* Don't process the packet without data */
+	if (unlikely(tcp_dl == 0)) {
+		pkts_out[0] = pkt;
+		return ret;
+	}
+
+	hdr_offset += pkt->l3_len + pkt->l4_len;
+	pyld_unit_size = gso_size - hdr_offset - ETHER_CRC_LEN;
+
+	/* Segment the payload */
+	ret = gso_do_segment(pkt, hdr_offset, pyld_unit_size, direct_pool,
+			indirect_pool, pkts_out, nb_pkts_out);
+	if (ret > 1)
+		gso_update_pkt_headers(pkt, ipid_delta, pkts_out, ret);
+
+	return ret;
+}
diff --git a/lib/librte_gso/gso_tunnel_tcp4.h b/lib/librte_gso/gso_tunnel_tcp4.h
new file mode 100644
index 0000000..0280b38
--- /dev/null
+++ b/lib/librte_gso/gso_tunnel_tcp4.h
@@ -0,0 +1,76 @@
+/*-
+ *   BSD LICENSE
+ *
+ *   Copyright(c) 2017 Intel Corporation. All rights reserved.
+ *   All rights reserved.
+ *
+ *   Redistribution and use in source and binary forms, with or without
+ *   modification, are permitted provided that the following conditions
+ *   are met:
+ *
+ *     * Redistributions of source code must retain the above copyright
+ *       notice, this list of conditions and the following disclaimer.
+ *     * Redistributions in binary form must reproduce the above copyright
+ *       notice, this list of conditions and the following disclaimer in
+ *       the documentation and/or other materials provided with the
+ *       distribution.
+ *     * Neither the name of Intel Corporation nor the names of its
+ *       contributors may be used to endorse or promote products derived
+ *       from this software without specific prior written permission.
+ *
+ *   THIS SOFTWARE IS PROVIDED BY THE COPYRIGHT HOLDERS AND CONTRIBUTORS
+ *   "AS IS" AND ANY EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT
+ *   LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR
+ *   A PARTICULAR PURPOSE ARE DISCLAIMED. IN NO EVENT SHALL THE COPYRIGHT
+ *   OWNER OR CONTRIBUTORS BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL,
+ *   SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT
+ *   LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES; LOSS OF USE,
+ *   DATA, OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND ON ANY
+ *   THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT
+ *   (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE USE
+ *   OF THIS SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
+ */
+
+#ifndef _GSO_TUNNEL_TCP4_H_
+#define _GSO_TUNNEL_TCP4_H_
+
+#include <stdint.h>
+#include <rte_mbuf.h>
+
+/**
+ * Segment an tunneling packet with inner TCP/IPv4 headers. This function
+ * assumes the input packet has correct checksums and doesn't update
+ * checksums for GSO segment. Furthermore, it doesn't process IP fragment
+ * packets.
+ *
+ * @param pkt
+ *  The packet mbuf to segment.
+ * @param gso_size
+ *  The max length of a GSO segment, measured in bytes.
+ * @param ipid_delta
+ *  The increasing uint of IP ids.
+ * @param direct_pool
+ *  MBUF pool used for allocating direct buffers for output segments.
+ * @param indirect_pool
+ *  MBUF pool used for allocating indirect buffers for output segments.
+ * @param pkts_out
+ *  Pointer array used to store the MBUF addresses of output GSO
+ *  segments, when gso_tunnel_tcp4_segment() successes. If the memory
+ *  space in pkts_out is insufficient, gso_tcp4_segment() fails and
+ *  returns -EINVAL.
+ * @param nb_pkts_out
+ *  The max number of items that 'pkts_out' can keep.
+ *
+ * @return
+ *   - The number of GSO segments filled in pkts_out on success.
+ *   - Return -ENOMEM if run out of memory in MBUF pools.
+ *   - Return -EINVAL for invalid parameters.
+ */
+int gso_tunnel_tcp4_segment(struct rte_mbuf *pkt,
+		uint16_t gso_size,
+		uint8_t ipid_delta,
+		struct rte_mempool *direct_pool,
+		struct rte_mempool *indirect_pool,
+		struct rte_mbuf **pkts_out,
+		uint16_t nb_pkts_out);
+#endif
diff --git a/lib/librte_gso/rte_gso.c b/lib/librte_gso/rte_gso.c
index 95f6ea6..226c75a 100644
--- a/lib/librte_gso/rte_gso.c
+++ b/lib/librte_gso/rte_gso.c
@@ -38,6 +38,7 @@
 #include "rte_gso.h"
 #include "gso_common.h"
 #include "gso_tcp4.h"
+#include "gso_tunnel_tcp4.h"
 
 int
 rte_gso_segment(struct rte_mbuf *pkt,
@@ -66,7 +67,11 @@ rte_gso_segment(struct rte_mbuf *pkt,
 	gso_size = gso_ctx.gso_size;
 	ipid_delta = gso_ctx.ipid_flag == RTE_GSO_IPID_INCREASE;
 
-	if (is_ipv4_tcp(pkt->packet_type)) {
+	if (is_ipv4_vxlan_ipv4_tcp(pkt->packet_type)) {
+		ret = gso_tunnel_tcp4_segment(pkt, gso_size, ipid_delta,
+				direct_pool, indirect_pool,
+				pkts_out, nb_pkts_out);
+	} else if (is_ipv4_tcp(pkt->packet_type)) {
 		ret = gso_tcp4_segment(pkt, gso_size, ipid_delta,
 				direct_pool, indirect_pool,
 				pkts_out, nb_pkts_out);
