diff --git a/doc/guides/cryptodevs/octeontx2.rst b/doc/guides/cryptodevs/octeontx2.rst
index 00226a8c77..f0beb92a49 100644
--- a/doc/guides/cryptodevs/octeontx2.rst
+++ b/doc/guides/cryptodevs/octeontx2.rst
@@ -179,6 +179,7 @@ Features supported
 * IPv6
 * ESP
 * Tunnel mode
+* Transport mode(IPv4)
 * ESN
 * Anti-replay
 * UDP Encapsulation
diff --git a/doc/guides/rel_notes/release_21_05.rst b/doc/guides/rel_notes/release_21_05.rst
index e2ab7e0290..f04d097056 100644
--- a/doc/guides/rel_notes/release_21_05.rst
+++ b/doc/guides/rel_notes/release_21_05.rst
@@ -159,6 +159,8 @@ New Features
   * Added support for DIGEST_ENCRYPTED mode in OCTEON TX2 crypto PMD.
   * Updated the OCTEON TX2 crypto PMD lookaside protocol offload for IPsec with
     UDP encapsulation support for NAT Traversal.
+  * Updated the OCTEON TX2 crypto PMD lookaside protocol offload for IPsec with
+    IPv4 transport mode support.
 
 * **Updated Mellanox RegEx PMD.**
 
diff --git a/drivers/crypto/octeontx2/otx2_cryptodev_ops.c b/drivers/crypto/octeontx2/otx2_cryptodev_ops.c
index fc4d5bac49..31dd0d7f7c 100644
--- a/drivers/crypto/octeontx2/otx2_cryptodev_ops.c
+++ b/drivers/crypto/octeontx2/otx2_cryptodev_ops.c
@@ -932,7 +932,7 @@ otx2_cpt_sec_post_process(struct rte_crypto_op *cop, uintptr_t *rsp)
 	struct rte_mbuf *m = sym_op->m_src;
 	struct rte_ipv6_hdr *ip6;
 	struct rte_ipv4_hdr *ip;
-	uint16_t m_len;
+	uint16_t m_len = 0;
 	int mdata_len;
 	char *data;
 
@@ -942,11 +942,12 @@ otx2_cpt_sec_post_process(struct rte_crypto_op *cop, uintptr_t *rsp)
 	if (word0->s.opcode.major == OTX2_IPSEC_PO_PROCESS_IPSEC_INB) {
 		data = rte_pktmbuf_mtod(m, char *);
 
-		if (rsp[4] == RTE_SECURITY_IPSEC_TUNNEL_IPV4) {
+		if (rsp[4] == OTX2_IPSEC_PO_TRANSPORT ||
+		    rsp[4] == OTX2_IPSEC_PO_TUNNEL_IPV4) {
 			ip = (struct rte_ipv4_hdr *)(data +
 				OTX2_IPSEC_PO_INB_RPTR_HDR);
 			m_len = rte_be_to_cpu_16(ip->total_length);
-		} else {
+		} else if (rsp[4] == OTX2_IPSEC_PO_TUNNEL_IPV6) {
 			ip6 = (struct rte_ipv6_hdr *)(data +
 				OTX2_IPSEC_PO_INB_RPTR_HDR);
 			m_len = rte_be_to_cpu_16(ip6->payload_len) +
diff --git a/drivers/crypto/octeontx2/otx2_cryptodev_sec.c b/drivers/crypto/octeontx2/otx2_cryptodev_sec.c
index 210c53aa0a..3c5686a42c 100644
--- a/drivers/crypto/octeontx2/otx2_cryptodev_sec.c
+++ b/drivers/crypto/octeontx2/otx2_cryptodev_sec.c
@@ -25,12 +25,15 @@ ipsec_lp_len_precalc(struct rte_security_ipsec_xform *ipsec,
 {
 	struct rte_crypto_sym_xform *cipher_xform, *auth_xform;
 
-	if (ipsec->tunnel.type == RTE_SECURITY_IPSEC_TUNNEL_IPV4)
-		lp->partial_len = sizeof(struct rte_ipv4_hdr);
-	else if (ipsec->tunnel.type == RTE_SECURITY_IPSEC_TUNNEL_IPV6)
-		lp->partial_len = sizeof(struct rte_ipv6_hdr);
-	else
-		return -EINVAL;
+	lp->partial_len = 0;
+	if (ipsec->mode == RTE_SECURITY_IPSEC_SA_MODE_TUNNEL) {
+		if (ipsec->tunnel.type == RTE_SECURITY_IPSEC_TUNNEL_IPV4)
+			lp->partial_len = sizeof(struct rte_ipv4_hdr);
+		else if (ipsec->tunnel.type == RTE_SECURITY_IPSEC_TUNNEL_IPV6)
+			lp->partial_len = sizeof(struct rte_ipv6_hdr);
+		else
+			return -EINVAL;
+	}
 
 	if (ipsec->proto == RTE_SECURITY_IPSEC_SA_PROTO_ESP) {
 		lp->partial_len += sizeof(struct rte_esp_hdr);
@@ -203,7 +206,7 @@ crypto_sec_ipsec_outb_session_create(struct rte_cryptodev *crypto_dev,
 				     struct rte_security_session *sec_sess)
 {
 	struct rte_crypto_sym_xform *auth_xform, *cipher_xform;
-	struct otx2_ipsec_po_ip_template *template;
+	struct otx2_ipsec_po_ip_template *template = NULL;
 	const uint8_t *cipher_key, *auth_key;
 	struct otx2_sec_session_ipsec_lp *lp;
 	struct otx2_ipsec_po_sa_ctl *ctl;
@@ -229,10 +232,10 @@ crypto_sec_ipsec_outb_session_create(struct rte_cryptodev *crypto_dev,
 	memset(sa, 0, sizeof(struct otx2_ipsec_po_out_sa));
 
 	/* Initialize lookaside ipsec private data */
+	lp->mode_type = OTX2_IPSEC_PO_TRANSPORT;
 	lp->ip_id = 0;
 	lp->seq_lo = 1;
 	lp->seq_hi = 0;
-	lp->tunnel_type = ipsec->tunnel.type;
 
 	ret = ipsec_po_sa_ctl_set(ipsec, crypto_xform, ctl);
 	if (ret)
@@ -242,46 +245,47 @@ crypto_sec_ipsec_outb_session_create(struct rte_cryptodev *crypto_dev,
 	if (ret)
 		return ret;
 
-	if (ipsec->mode == RTE_SECURITY_IPSEC_SA_MODE_TUNNEL) {
-		/* Start ip id from 1 */
-		lp->ip_id = 1;
+	/* Start ip id from 1 */
+	lp->ip_id = 1;
+
+	if (ctl->enc_type == OTX2_IPSEC_PO_SA_ENC_AES_GCM) {
+		template = &sa->aes_gcm.template;
+		ctx_len = offsetof(struct otx2_ipsec_po_out_sa,
+				aes_gcm.template) + sizeof(
+				sa->aes_gcm.template.ip4);
+		ctx_len = RTE_ALIGN_CEIL(ctx_len, 8);
+		lp->ctx_len = ctx_len >> 3;
+	} else if (ctl->auth_type ==
+			OTX2_IPSEC_PO_SA_AUTH_SHA1) {
+		template = &sa->sha1.template;
+		ctx_len = offsetof(struct otx2_ipsec_po_out_sa,
+				sha1.template) + sizeof(
+				sa->sha1.template.ip4);
+		ctx_len = RTE_ALIGN_CEIL(ctx_len, 8);
+		lp->ctx_len = ctx_len >> 3;
+	} else if (ctl->auth_type ==
+			OTX2_IPSEC_PO_SA_AUTH_SHA2_256) {
+		template = &sa->sha2.template;
+		ctx_len = offsetof(struct otx2_ipsec_po_out_sa,
+				sha2.template) + sizeof(
+				sa->sha2.template.ip4);
+		ctx_len = RTE_ALIGN_CEIL(ctx_len, 8);
+		lp->ctx_len = ctx_len >> 3;
+	} else {
+		return -EINVAL;
+	}
+	ip = &template->ip4.ipv4_hdr;
+	if (ipsec->options.udp_encap) {
+		ip->next_proto_id = IPPROTO_UDP;
+		template->ip4.udp_src = rte_be_to_cpu_16(4500);
+		template->ip4.udp_dst = rte_be_to_cpu_16(4500);
+	} else {
+		ip->next_proto_id = IPPROTO_ESP;
+	}
 
+	if (ipsec->mode == RTE_SECURITY_IPSEC_SA_MODE_TUNNEL) {
 		if (ipsec->tunnel.type == RTE_SECURITY_IPSEC_TUNNEL_IPV4) {
-
-			if (ctl->enc_type == OTX2_IPSEC_PO_SA_ENC_AES_GCM) {
-				template = &sa->aes_gcm.template;
-				ctx_len = offsetof(struct otx2_ipsec_po_out_sa,
-						aes_gcm.template) + sizeof(
-						sa->aes_gcm.template.ip4);
-				ctx_len = RTE_ALIGN_CEIL(ctx_len, 8);
-				lp->ctx_len = ctx_len >> 3;
-			} else if (ctl->auth_type ==
-					OTX2_IPSEC_PO_SA_AUTH_SHA1) {
-				template = &sa->sha1.template;
-				ctx_len = offsetof(struct otx2_ipsec_po_out_sa,
-						sha1.template) + sizeof(
-						sa->sha1.template.ip4);
-				ctx_len = RTE_ALIGN_CEIL(ctx_len, 8);
-				lp->ctx_len = ctx_len >> 3;
-			} else if (ctl->auth_type ==
-					OTX2_IPSEC_PO_SA_AUTH_SHA2_256) {
-				template = &sa->sha2.template;
-				ctx_len = offsetof(struct otx2_ipsec_po_out_sa,
-						sha2.template) + sizeof(
-						sa->sha2.template.ip4);
-				ctx_len = RTE_ALIGN_CEIL(ctx_len, 8);
-				lp->ctx_len = ctx_len >> 3;
-			} else {
-				return -EINVAL;
-			}
-			ip = &template->ip4.ipv4_hdr;
-			if (ipsec->options.udp_encap) {
-				ip->next_proto_id = IPPROTO_UDP;
-				template->ip4.udp_src = rte_be_to_cpu_16(4500);
-				template->ip4.udp_dst = rte_be_to_cpu_16(4500);
-			} else {
-				ip->next_proto_id = IPPROTO_ESP;
-			}
+			lp->mode_type = OTX2_IPSEC_PO_TUNNEL_IPV4;
 			ip->version_ihl = RTE_IPV4_VHL_DEF;
 			ip->time_to_live = ipsec->tunnel.ipv4.ttl;
 			ip->type_of_service |= (ipsec->tunnel.ipv4.dscp << 2);
@@ -294,6 +298,7 @@ crypto_sec_ipsec_outb_session_create(struct rte_cryptodev *crypto_dev,
 		} else if (ipsec->tunnel.type ==
 				RTE_SECURITY_IPSEC_TUNNEL_IPV6) {
 
+			lp->mode_type = OTX2_IPSEC_PO_TUNNEL_IPV6;
 			if (ctl->enc_type == OTX2_IPSEC_PO_SA_ENC_AES_GCM) {
 				template = &sa->aes_gcm.template;
 				ctx_len = offsetof(struct otx2_ipsec_po_out_sa,
@@ -343,11 +348,7 @@ crypto_sec_ipsec_outb_session_create(struct rte_cryptodev *crypto_dev,
 				sizeof(struct in6_addr));
 			memcpy(&ip6->dst_addr, &ipsec->tunnel.ipv6.dst_addr,
 				sizeof(struct in6_addr));
-		} else {
-			return -EINVAL;
 		}
-	} else {
-		return -EINVAL;
 	}
 
 	cipher_xform = crypto_xform;
@@ -428,13 +429,20 @@ crypto_sec_ipsec_inb_session_create(struct rte_cryptodev *crypto_dev,
 	if (ret)
 		return ret;
 
-	lp->tunnel_type = ipsec->tunnel.type;
+	lp->mode_type = OTX2_IPSEC_PO_TRANSPORT;
+
 	auth_xform = crypto_xform;
 	cipher_xform = crypto_xform->next;
 
 	cipher_key_len = 0;
 	auth_key_len = 0;
 
+	if (ipsec->mode == RTE_SECURITY_IPSEC_SA_MODE_TUNNEL)
+		lp->mode_type = (ipsec->tunnel.type ==
+				RTE_SECURITY_IPSEC_TUNNEL_IPV4) ?
+				OTX2_IPSEC_PO_TUNNEL_IPV4 :
+				OTX2_IPSEC_PO_TUNNEL_IPV6;
+
 	if (crypto_xform->type == RTE_CRYPTO_SYM_XFORM_AEAD) {
 		if (crypto_xform->aead.algo == RTE_CRYPTO_AEAD_AES_GCM)
 			memcpy(sa->iv.gcm.nonce, &ipsec->salt, 4);
diff --git a/drivers/crypto/octeontx2/otx2_cryptodev_sec.h b/drivers/crypto/octeontx2/otx2_cryptodev_sec.h
index 2849c1ab75..87f55c97fe 100644
--- a/drivers/crypto/octeontx2/otx2_cryptodev_sec.h
+++ b/drivers/crypto/octeontx2/otx2_cryptodev_sec.h
@@ -55,8 +55,8 @@ struct otx2_sec_session_ipsec_lp {
 	uint8_t iv_length;
 	/** Auth IV length in bytes */
 	uint8_t auth_iv_length;
-	/** IPsec tunnel type */
-	enum rte_security_ipsec_tunnel_type tunnel_type;
+	/** IPsec mode and tunnel type */
+	enum otx2_ipsec_po_mode_type mode_type;
 };
 
 int otx2_crypto_sec_ctx_create(struct rte_cryptodev *crypto_dev);
diff --git a/drivers/crypto/octeontx2/otx2_ipsec_po.h b/drivers/crypto/octeontx2/otx2_ipsec_po.h
index eda9f19738..b3e7456551 100644
--- a/drivers/crypto/octeontx2/otx2_ipsec_po.h
+++ b/drivers/crypto/octeontx2/otx2_ipsec_po.h
@@ -20,6 +20,12 @@
 
 #define OTX2_IPSEC_PO_INB_RPTR_HDR         0x8
 
+enum otx2_ipsec_po_mode_type {
+	OTX2_IPSEC_PO_TRANSPORT = 1,
+	OTX2_IPSEC_PO_TUNNEL_IPV4,
+	OTX2_IPSEC_PO_TUNNEL_IPV6,
+};
+
 enum otx2_ipsec_po_comp_e {
 	OTX2_IPSEC_PO_CC_SUCCESS = 0x00,
 	OTX2_IPSEC_PO_CC_AUTH_UNSUPPORTED = 0xB0,
diff --git a/drivers/crypto/octeontx2/otx2_ipsec_po_ops.h b/drivers/crypto/octeontx2/otx2_ipsec_po_ops.h
index f4cab19811..58b199f4f3 100644
--- a/drivers/crypto/octeontx2/otx2_ipsec_po_ops.h
+++ b/drivers/crypto/octeontx2/otx2_ipsec_po_ops.h
@@ -26,7 +26,7 @@ otx2_ipsec_po_out_rlen_get(struct otx2_sec_session_ipsec_lp *sess,
 
 static __rte_always_inline struct cpt_request_info *
 alloc_request_struct(char *maddr, void *cop, int mdata_len,
-		     enum rte_security_ipsec_tunnel_type tunnel_type)
+		     enum otx2_ipsec_po_mode_type mode_type)
 {
 	struct cpt_request_info *req;
 	struct cpt_meta_info *meta;
@@ -48,7 +48,7 @@ alloc_request_struct(char *maddr, void *cop, int mdata_len,
 	op[1] = (uintptr_t)cop;
 	op[2] = (uintptr_t)req;
 	op[3] = mdata_len;
-	op[4] = tunnel_type;
+	op[4] = mode_type;
 
 	return req;
 }
@@ -89,7 +89,7 @@ process_outb_sa(struct rte_crypto_op *cop,
 
 	mdata += extend_tail; /* mdata follows encrypted data */
 	req = alloc_request_struct(mdata, (void *)cop, mdata_len,
-		sess->tunnel_type);
+		sess->mode_type);
 
 	data = rte_pktmbuf_prepend(m_src, extend_head);
 	if (unlikely(data == NULL)) {
@@ -162,7 +162,7 @@ process_inb_sa(struct rte_crypto_op *cop,
 	}
 
 	req = alloc_request_struct(mdata, (void *)cop, mdata_len,
-		sess->tunnel_type);
+		sess->mode_type);
 
 	/* Prepare CPT instruction */
 	word0.u64 = sess->ucmd_w0;
