diff --git a/drivers/common/octeontx2/otx2_mbox.h b/drivers/common/octeontx2/otx2_mbox.h
index c2a9e9fe6..e0e4e2f63 100644
--- a/drivers/common/octeontx2/otx2_mbox.h
+++ b/drivers/common/octeontx2/otx2_mbox.h
@@ -723,6 +723,7 @@ struct nix_lf_alloc_rsp {
 	uint8_t __otx2_io lf_tx_stats; /* NIX_AF_CONST1::LF_TX_STATS */
 	uint16_t __otx2_io cints; /* NIX_AF_CONST2::CINTS */
 	uint16_t __otx2_io qints; /* NIX_AF_CONST2::QINTS */
+	uint8_t __otx2_io hw_rx_tstamp_en; /*set if rx timestamping enabled */
 };
 
 struct nix_lf_free_req {
diff --git a/drivers/net/octeontx2/otx2_ethdev.c b/drivers/net/octeontx2/otx2_ethdev.c
index aab34dbcf..9274dbb96 100644
--- a/drivers/net/octeontx2/otx2_ethdev.c
+++ b/drivers/net/octeontx2/otx2_ethdev.c
@@ -86,6 +86,7 @@ nix_lf_alloc(struct otx2_eth_dev *dev, uint32_t nb_rxq, uint32_t nb_txq)
 	dev->cints = rsp->cints;
 	dev->qints = rsp->qints;
 	dev->npc_flow.channel = dev->rx_chan_base;
+	dev->ptp_en = rsp->hw_rx_tstamp_en;
 
 	return 0;
 }
@@ -1899,7 +1900,11 @@ otx2_nix_dev_start(struct rte_eth_dev *eth_dev)
 	struct otx2_eth_dev *dev = otx2_eth_pmd_priv(eth_dev);
 	int rc, i;
 
-	if (eth_dev->data->nb_rx_queues != 0) {
+	/* MTU recalculate should be avoided here if PTP is enabled by PF, as
+	 * otx2_nix_recalc_mtu would be invoked during otx2_nix_ptp_enable_vf
+	 * call below.
+	 */
+	if (eth_dev->data->nb_rx_queues != 0 && !otx2_ethdev_is_ptp_en(dev)) {
 		rc = otx2_nix_recalc_mtu(eth_dev);
 		if (rc)
 			return rc;
@@ -1935,6 +1940,12 @@ otx2_nix_dev_start(struct rte_eth_dev *eth_dev)
 	else
 		otx2_nix_timesync_disable(eth_dev);
 
+	/* Update VF about data off shifted by 8 bytes if PTP already
+	 * enabled in PF owning this VF
+	 */
+	if (otx2_ethdev_is_ptp_en(dev) && otx2_dev_is_vf(dev))
+		otx2_nix_ptp_enable_vf(eth_dev);
+
 	rc = npc_rx_enable(dev);
 	if (rc) {
 		otx2_err("Failed to enable NPC rx %d", rc);
diff --git a/drivers/net/octeontx2/otx2_ethdev.h b/drivers/net/octeontx2/otx2_ethdev.h
index b49e309fd..d369d4dc5 100644
--- a/drivers/net/octeontx2/otx2_ethdev.h
+++ b/drivers/net/octeontx2/otx2_ethdev.h
@@ -562,5 +562,6 @@ int otx2_nix_timesync_read_time(struct rte_eth_dev *eth_dev,
 int otx2_eth_dev_ptp_info_update(struct otx2_dev *dev, bool ptp_en);
 int otx2_nix_read_clock(struct rte_eth_dev *eth_dev, uint64_t *time);
 int otx2_nix_raw_clock_tsc_conv(struct otx2_eth_dev *dev);
+void otx2_nix_ptp_enable_vf(struct rte_eth_dev *eth_dev);
 
 #endif /* __OTX2_ETHDEV_H__ */
diff --git a/drivers/net/octeontx2/otx2_ethdev_ops.c b/drivers/net/octeontx2/otx2_ethdev_ops.c
index d1e77c324..45b5c5185 100644
--- a/drivers/net/octeontx2/otx2_ethdev_ops.c
+++ b/drivers/net/octeontx2/otx2_ethdev_ops.c
@@ -16,6 +16,8 @@ otx2_nix_mtu_set(struct rte_eth_dev *eth_dev, uint16_t mtu)
 	struct nix_frs_cfg *req;
 	int rc;
 
+	frame_size += NIX_TIMESYNC_RX_OFFSET * otx2_ethdev_is_ptp_en(dev);
+
 	/* Check if MTU is within the allowed range */
 	if (frame_size < NIX_MIN_FRS || frame_size > NIX_MAX_FRS)
 		return -EINVAL;
diff --git a/drivers/net/octeontx2/otx2_ptp.c b/drivers/net/octeontx2/otx2_ptp.c
index f13f0408a..f34b9339c 100644
--- a/drivers/net/octeontx2/otx2_ptp.c
+++ b/drivers/net/octeontx2/otx2_ptp.c
@@ -8,6 +8,38 @@
 
 #define PTP_FREQ_ADJUST (1 << 9)
 
+/* Function to enable ptp config for VFs */
+void
+otx2_nix_ptp_enable_vf(struct rte_eth_dev *eth_dev)
+{
+	struct otx2_eth_dev *dev = otx2_eth_pmd_priv(eth_dev);
+
+	if (otx2_nix_recalc_mtu(eth_dev))
+		otx2_err("Failed to set MTU size for ptp");
+
+	dev->scalar_ena = true;
+	dev->rx_offload_flags |= NIX_RX_OFFLOAD_TSTAMP_F;
+
+	/* Setting up the function pointers as per new offload flags */
+	otx2_eth_set_rx_function(eth_dev);
+	otx2_eth_set_tx_function(eth_dev);
+}
+
+static uint16_t
+nix_eth_ptp_vf_burst(void *queue, struct rte_mbuf **mbufs, uint16_t pkts)
+{
+	struct otx2_eth_rxq *rxq = queue;
+	struct rte_eth_dev *eth_dev;
+
+	RTE_SET_USED(mbufs);
+	RTE_SET_USED(pkts);
+
+	eth_dev = rxq->eth_dev;
+	otx2_nix_ptp_enable_vf(eth_dev);
+
+	return 0;
+}
+
 static int
 nix_read_raw_clock(struct otx2_eth_dev *dev, uint64_t *clock, uint64_t *tsc,
 		   uint8_t is_pmu)
@@ -104,7 +136,7 @@ nix_ptp_config(struct rte_eth_dev *eth_dev, int en)
 	struct otx2_mbox *mbox = dev->mbox;
 	uint8_t rc = -EINVAL;
 
-	if (otx2_dev_is_vf_or_sdp(dev))
+	if (otx2_dev_is_vf_or_sdp(dev) || otx2_dev_is_lbk(dev))
 		return rc;
 
 	if (en) {
@@ -153,6 +185,17 @@ otx2_eth_dev_ptp_info_update(struct otx2_dev *dev, bool ptp_en)
 			otx2_nix_rxq_mbuf_setup(otx2_dev,
 						eth_dev->data->port_id);
 	}
+	if (otx2_dev_is_vf(otx2_dev) && !(otx2_dev_is_sdp(otx2_dev)) &&
+	    !(otx2_dev_is_lbk(otx2_dev))) {
+		/* In case of VF, setting of MTU cant be done directly in this
+		 * function as this is running as part of MBOX request(PF->VF)
+		 * and MTU setting also requires MBOX message to be
+		 * sent(VF->PF)
+		 */
+		eth_dev->rx_pkt_burst = nix_eth_ptp_vf_burst;
+		rte_mb();
+	}
+
 	return 0;
 }
 
@@ -162,14 +205,16 @@ otx2_nix_timesync_enable(struct rte_eth_dev *eth_dev)
 	struct otx2_eth_dev *dev = otx2_eth_pmd_priv(eth_dev);
 	int i, rc = 0;
 
-	if (otx2_ethdev_is_ptp_en(dev)) {
-		otx2_info("PTP mode is already enabled ");
+	/* If we are VF/SDP/LBK, ptp cannot not be enabled */
+	if (otx2_dev_is_vf_or_sdp(dev) || otx2_dev_is_lbk(dev)) {
+		otx2_info("PTP cannot be enabled in case of VF/SDP/LBK");
 		return -EINVAL;
 	}
 
-	/* If we are VF, no further action can be taken */
-	if (otx2_dev_is_vf_or_sdp(dev))
+	if (otx2_ethdev_is_ptp_en(dev)) {
+		otx2_info("PTP mode is already enabled");
 		return -EINVAL;
+	}
 
 	if (!(dev->rx_offload_flags & NIX_RX_OFFLOAD_PTYPE_F)) {
 		otx2_err("Ptype offload is disabled, it should be enabled");
@@ -207,6 +252,11 @@ otx2_nix_timesync_enable(struct rte_eth_dev *eth_dev)
 		otx2_eth_set_rx_function(eth_dev);
 		otx2_eth_set_tx_function(eth_dev);
 	}
+
+	rc = otx2_nix_recalc_mtu(eth_dev);
+	if (rc)
+		otx2_err("Failed to set MTU size for ptp");
+
 	return rc;
 }
 
@@ -221,8 +271,7 @@ otx2_nix_timesync_disable(struct rte_eth_dev *eth_dev)
 		return -EINVAL;
 	}
 
-	/* If we are VF, nothing else can be done */
-	if (otx2_dev_is_vf_or_sdp(dev))
+	if (otx2_dev_is_vf_or_sdp(dev) || otx2_dev_is_lbk(dev))
 		return -EINVAL;
 
 	dev->rx_offloads &= ~DEV_RX_OFFLOAD_TIMESTAMP;
@@ -240,6 +289,11 @@ otx2_nix_timesync_disable(struct rte_eth_dev *eth_dev)
 		otx2_eth_set_rx_function(eth_dev);
 		otx2_eth_set_tx_function(eth_dev);
 	}
+
+	rc = otx2_nix_recalc_mtu(eth_dev);
+	if (rc)
+		otx2_err("Failed to set MTU size for ptp");
+
 	return rc;
 }
 
diff --git a/drivers/net/octeontx2/otx2_rx.h b/drivers/net/octeontx2/otx2_rx.h
index 1a1ac40bd..351ad0fcb 100644
--- a/drivers/net/octeontx2/otx2_rx.h
+++ b/drivers/net/octeontx2/otx2_rx.h
@@ -58,6 +58,8 @@ otx2_nix_mbuf_to_tstamp(struct rte_mbuf *mbuf,
 	    (mbuf->data_off == RTE_PKTMBUF_HEADROOM +
 	     NIX_TIMESYNC_RX_OFFSET)) {
 
+		mbuf->pkt_len -= NIX_TIMESYNC_RX_OFFSET;
+
 		/* Reading the rx timestamp inserted by CGX, viz at
 		 * starting of the packet data.
 		 */
