diff --git a/ovn/northd/ovn-northd.8.xml b/ovn/northd/ovn-northd.8.xml
index 2665ed5..6837859 100644
--- a/ovn/northd/ovn-northd.8.xml
+++ b/ovn/northd/ovn-northd.8.xml
@@ -342,7 +342,88 @@ output;
       </li>
     </ul>
 
-    <h3>Ingress Table 6: Destination Lookup</h3>
+    <h3>Ingress Table 6: DHCP pause</h3>
+
+    <p>
+      This table adds the DHCP options to a DHCP packet from the
+      logical ports configured with IPv4 address(es) and DHCP options.
+    </p>
+
+    <ul>
+      <li>
+        <p>
+          A priority-100 logical flow is added for these logical ports
+          which matches the packet with <code>udp.src</code> = 68 and
+          <code>udp.dst</code> = 67 and applies the action
+          <code>put_dhcp_opts</code> and advances the packet to the table 7.
+        </p>
+
+        <pre>
+put_dhcp_opts(<var>R</var>, offer_ip = <var>O</var>, DHCP_OPTIONS);
+next;
+        </pre>
+
+        <p>
+          The action <code>put_dhcp_opts</code> adds the DHCP options to
+          the packet and sets the <code>yiaddr</code> to the offer ip
+          defined in <var>O</var> only if the packet is a
+          DHCPDISCOVER/DHCPREQUEST and resumes the pipeline by setting
+          <code>0x1</code> to the OVS register <var>R</var>.
+          If the packet is non-DHCP packet or invalid DHCP packet
+          it resumes the pipeline without any modifications.
+        </p>
+
+      </li>
+
+      <li>
+        A priority-0 flow that matches all packets to advances to table 7.
+      </li>
+    </ul>
+
+    <h3>Ingress Table 7: DHCP resume</h3>
+
+    <p>
+      This table implements DHCP responder for the resumed DHCP packets
+      from the previous table.
+    </p>
+
+    <ul>
+      <li>
+        <p>
+          A priority 100 logical flow is added for the logical ports configured
+          with DHCP options which matches the packet with
+          <code>udp.src</code> = 68, <code>udp.dst</code> = 67 and
+          <code>reg0</code> = 0x1 and responds back to the
+          <code>inport</code> after applying these actions.
+          If <code>reg0</code> is set to 1, it means that the action
+          <code>put_dhcp_opts</code> was successful.
+        </p>
+
+        <pre>
+eth.dst = eth.src;
+eth.src = <var>E</var>;
+ip4.dst = <var>O</var>;
+ip4.src = <var>S</var>;
+udp.src = 67;
+udp.dst = 68;
+outport = <var>P</var>;
+inport = ""; /* Allow sending out inport. */
+output;
+        </pre>
+
+        <p>
+          Where <var>E</var> is the server mac address and <var>S</var> is the
+          server IPv4 address defined in the DHCP options and <var>O</var> is
+          the IPv4 address defined in the logical port's addresses column.
+        </p>
+      </li>
+
+      <li>
+        A priority-0 flow that matches all packets to advances to table 8.
+      </li>
+    </ul>
+
+    <h3>Ingress Table 8: Destination Lookup</h3>
 
     <p>
       This table implements switching behavior.  It contains these logical
@@ -386,6 +467,12 @@ output;
       This is similar to ingress table 4 except for <code>to-lport</code> ACLs.
     </p>
 
+    <p>
+      Also a priority 34000 logical flow is added for each subnet of the logical
+      switch which has DHCP options defined to allow the DHCP reply packet
+      from the <code>Ingress Table 7: DHCP resume</code>.
+    </p>
+
     <h3>Egress Table 2: Egress Port Security - IP</h3>
 
     <p>
diff --git a/ovn/northd/ovn-northd.c b/ovn/northd/ovn-northd.c
index a8dd2bb..11969f1 100644
--- a/ovn/northd/ovn-northd.c
+++ b/ovn/northd/ovn-northd.c
@@ -26,6 +26,7 @@
 #include "hash.h"
 #include "hmap.h"
 #include "json.h"
+#include "ovn/lib/ovn-dhcp.h"
 #include "ovn/lib/lex.h"
 #include "ovn/lib/ovn-nb-idl.h"
 #include "ovn/lib/ovn-sb-idl.h"
@@ -33,6 +34,7 @@
 #include "packets.h"
 #include "poll-loop.h"
 #include "smap.h"
+#include "sset.h"
 #include "stream.h"
 #include "stream-ssl.h"
 #include "unixctl.h"
@@ -94,7 +96,9 @@ enum ovn_stage {
     PIPELINE_STAGE(SWITCH, IN,  PRE_ACL,        3, "ls_in_pre_acl")      \
     PIPELINE_STAGE(SWITCH, IN,  ACL,            4, "ls_in_acl")          \
     PIPELINE_STAGE(SWITCH, IN,  ARP_RSP,        5, "ls_in_arp_rsp")      \
-    PIPELINE_STAGE(SWITCH, IN,  L2_LKUP,        6, "ls_in_l2_lkup")      \
+    PIPELINE_STAGE(SWITCH, IN,  DHCP_PAUSE,     6, "ls_in_dhcp_pause")      \
+    PIPELINE_STAGE(SWITCH, IN,  DHCP_RESUME,    7, "ls_in_dhcp_resume")      \
+    PIPELINE_STAGE(SWITCH, IN,  L2_LKUP,        8, "ls_in_l2_lkup")      \
                                                                       \
     /* Logical switch egress stages. */                               \
     PIPELINE_STAGE(SWITCH, OUT, PRE_ACL,     0, "ls_out_pre_acl")     \
@@ -1325,6 +1329,82 @@ has_stateful_acl(struct ovn_datapath *od)
     return false;
 }
 
+static bool
+build_dhcp_action(struct ovn_port *op, ovs_be32 offer_ip,
+                  struct ds *pause_action, struct ds *resume_action)
+{
+    if(smap_get_bool(&op->nbs->options, "dhcp_disabled", false)) {
+        /* CMS has disabled native dhcp for this lport */
+        return false;
+    }
+
+    struct nbrec_subnet *subnet = NULL;
+    ovs_be32 host_ip, mask;
+    for (size_t i = 0; i < op->od->nbs->n_subnets; i++) {
+        char *error = ip_parse_masked(op->od->nbs->subnets[i]->cidr, &host_ip,
+                                      &mask);
+        if (!error && !((offer_ip ^ host_ip) & mask)) {
+           /* offerip belongs to this subnet */
+            subnet = op->od->nbs->subnets[i];
+            break;
+        }
+        free(error);
+    }
+
+    if (!(subnet && subnet->gateway_ip && subnet->enable_dhcp
+          && subnet->ip_version == 4)) {
+        return false;
+    }
+
+
+    const char *server_ip = smap_get(&subnet->dhcp_options, "server_id");
+    const char *server_mac = smap_get(&subnet->dhcp_options, "server_mac");
+    const char *lease_time = smap_get(&subnet->dhcp_options, "lease_time");
+
+    if (!(server_ip && server_mac && lease_time)) {
+        /* "server_id", "server_mac" and "lease_time" should be present
+         * in the dhcp_options. */
+        return false;
+    }
+
+    struct smap dhcp_options = SMAP_INITIALIZER(&dhcp_options);
+    smap_clone(&dhcp_options, &subnet->dhcp_options);
+
+    /* server_mac is not dhcp option, delete it from the smap */
+    smap_remove(&dhcp_options, "server_mac");
+    smap_add(&dhcp_options, "router", subnet->gateway_ip);
+    char *netmask = xasprintf(IP_FMT, IP_ARGS(mask));
+    smap_add(&dhcp_options, "netmask", netmask);
+    free(netmask);
+
+    struct smap_node *node;
+    /* override the dhcp options define in the lport options if any */
+    SMAP_FOR_EACH(node, &op->nbs->options) {
+        if(!strncmp(node->key, "dhcp_opt_", 9)) {
+            smap_replace(&dhcp_options, &node->key[9], node->value);
+        }
+    }
+
+    ds_put_format(pause_action, "put_dhcp_opts(reg0, offerip = "IP_FMT", ",
+                  IP_ARGS(offer_ip));
+    SMAP_FOR_EACH(node, &dhcp_options) {
+        ds_put_format(pause_action, "%s = %s, ", node->key, node->value);
+    }
+
+    ds_chomp(pause_action, ' ');
+    ds_chomp(pause_action, ',');
+    ds_put_cstr(pause_action, "); next;");
+
+    ds_put_format(resume_action, "eth.dst = eth.src; eth.src = %s; "
+                  "ip4.dst = "IP_FMT"; ip4.src = %s; udp.src = 67; "
+                  "udp.dst = 68; outport = inport; inport = \"\";"
+                  " /* Allow sending out inport. */ output;",
+                  server_mac, IP_ARGS(offer_ip), server_ip);
+
+    smap_destroy(&dhcp_options);
+    return true;
+}
+
 static void
 build_acls(struct ovn_datapath *od, struct hmap *lflows, struct hmap *ports)
 {
@@ -1475,6 +1555,36 @@ build_acls(struct ovn_datapath *od, struct hmap *lflows, struct hmap *ports)
                           acl->match, "drop;");
         }
     }
+
+    /* Add 34000 priority flow to allow DHCP reply from ovn-controller to all
+     * logical ports of the datapath if the CMS has configured DHCP options*/
+    if (od->nbs && od->nbs->n_ports && od->nbs->n_subnets) {
+        for (size_t i = 0; i < od->nbs->n_subnets; i++) {
+             if (!(od->nbs->subnets[i]->gateway_ip &&
+                   od->nbs->subnets[i]->enable_dhcp &&
+                   od->nbs->subnets[i]->ip_version == 4)) {
+                 continue;
+             }
+
+             const char *server_id = smap_get(
+                 &od->nbs->subnets[i]->dhcp_options, "server_id");
+             const char *server_mac = smap_get(
+                 &od->nbs->subnets[i]->dhcp_options, "server_mac");
+             const char *lease_time = smap_get(
+                 &od->nbs->subnets[i]->dhcp_options, "lease_time");
+             if (server_id && server_mac && lease_time) {
+                 struct ds match = DS_EMPTY_INITIALIZER;
+                 const char *actions = has_stateful ? "ct_commit; next;" :
+                                       "next;";
+                 ds_put_format(&match, "eth.src == %s && ip4.src == %s &&"
+                               " udp && udp.src == 67 && udp.dst == 68",
+                               server_mac, server_id);
+                 ovn_lflow_add(
+                     lflows, od, S_SWITCH_OUT_ACL, 34000, ds_cstr(&match),
+                     actions);
+             }
+        }
+    }
 }
 
 static void
@@ -1557,7 +1667,7 @@ build_lswitch_flows(struct hmap *datapaths, struct hmap *ports,
         ovn_lflow_add(lflows, od, S_SWITCH_IN_PORT_SEC_IP, 0, "1", "next;");
     }
 
-    /* Ingress table 3: ARP responder, skip requests coming from localnet ports.
+    /* Ingress table 5: ARP responder, skip requests coming from localnet ports.
      * (priority 100). */
     HMAP_FOR_EACH (op, key_node, ports) {
         if (!op->nbs) {
@@ -1632,7 +1742,73 @@ build_lswitch_flows(struct hmap *datapaths, struct hmap *ports,
         ovn_lflow_add(lflows, od, S_SWITCH_IN_ARP_RSP, 0, "1", "next;");
     }
 
-    /* Ingress table 6: Destination lookup, broadcast and multicast handling
+    /* Logical switch ingress table 6 and 7: DHCP pause and resume
+     * priority 100 flows. */
+    HMAP_FOR_EACH (op, key_node, ports) {
+        if (!op->nbs) {
+           continue;
+        }
+
+        if (!lport_is_enabled(op->nbs) || !strcmp(op->nbs->type, "router")) {
+            /* Don't add the DHCP flows if the port is not enabled or if the
+             * port is a router port */
+            continue;
+        }
+
+        for (size_t i = 0; i < op->nbs->n_addresses; i++) {
+            struct lport_addresses laddrs;
+            if (!extract_lport_addresses(op->nbs->addresses[i], &laddrs,
+                                        false)) {
+                continue;
+            }
+
+            if (!laddrs.n_ipv4_addrs) {
+                continue;
+            }
+
+            for (size_t j = 0; j < laddrs.n_ipv4_addrs; j++) {
+                struct ds pause_action = DS_EMPTY_INITIALIZER;
+                struct ds resume_action = DS_EMPTY_INITIALIZER;
+                if (build_dhcp_action(op, laddrs.ipv4_addrs[j].addr,
+                                      &pause_action, &resume_action)) {
+                    struct ds match = DS_EMPTY_INITIALIZER;
+                    ds_put_format(
+                        &match, "inport == %s && eth.src == "ETH_ADDR_FMT
+                        " && ip4.src == 0.0.0.0 && "
+                        "ip4.dst == 255.255.255.255 && udp.src == 68 && "
+                        "udp.dst == 67", op->json_key,
+                        ETH_ADDR_ARGS(laddrs.ea));
+
+                    ovn_lflow_add(lflows, op->od, S_SWITCH_IN_DHCP_PAUSE, 100,
+                                  ds_cstr(&match), ds_cstr(&pause_action));
+                    /* If reg0 is set to 1, it means the put_dhcp_opts action
+                     * is successful */
+                    ds_put_cstr(&match, " && reg0 == 1");
+                    ovn_lflow_add(lflows, op->od, S_SWITCH_IN_DHCP_RESUME, 100,
+                                  ds_cstr(&match), ds_cstr(&resume_action));
+                    ds_destroy(&match);
+                    ds_destroy(&pause_action);
+                    ds_destroy(&resume_action);
+                    break;
+                }
+            }
+            free(laddrs.ipv4_addrs);
+        }
+    }
+
+    /* Ingress table 6 and 7: DHCP pause and resume, by default goto next.
+     * (priority 0)*/
+
+    HMAP_FOR_EACH (od, key_node, datapaths) {
+        if (!od->nbs) {
+            continue;
+        }
+
+        ovn_lflow_add(lflows, od, S_SWITCH_IN_DHCP_PAUSE, 0, "1", "next;");
+        ovn_lflow_add(lflows, od, S_SWITCH_IN_DHCP_RESUME, 0, "1", "next;");
+    }
+
+    /* Ingress table 8: Destination lookup, broadcast and multicast handling
      * (priority 100). */
     HMAP_FOR_EACH (op, key_node, ports) {
         if (!op->nbs) {
@@ -1652,7 +1828,7 @@ build_lswitch_flows(struct hmap *datapaths, struct hmap *ports,
                       "outport = \""MC_FLOOD"\"; output;");
     }
 
-    /* Ingress table 6: Destination lookup, unicast handling (priority 50), */
+    /* Ingress table 8: Destination lookup, unicast handling (priority 50), */
     HMAP_FOR_EACH (op, key_node, ports) {
         if (!op->nbs) {
             continue;
@@ -1689,7 +1865,7 @@ build_lswitch_flows(struct hmap *datapaths, struct hmap *ports,
         }
     }
 
-    /* Ingress table 6: Destination lookup for unknown MACs (priority 0). */
+    /* Ingress table 8: Destination lookup for unknown MACs (priority 0). */
     HMAP_FOR_EACH (od, key_node, datapaths) {
         if (!od->nbs) {
             continue;
@@ -2397,6 +2573,77 @@ ovnsb_db_run(struct northd_context *ctx)
 }
 
 
+static struct dhcp_opts_map supported_dhcp_opts[] = {
+    OFFERIP,
+    DHCP_OPT_NETMASK,
+    DHCP_OPT_ROUTER,
+    DHCP_OPT_DNS_SERVER,
+    DHCP_OPT_LOG_SERVER,
+    DHCP_OPT_LPR_SERVER,
+    DHCP_OPT_SWAP_SERVER,
+    DHCP_OPT_POLICY_FILTER,
+    DHCP_OPT_ROUTER_SOLICITATION,
+    DHCP_OPT_NIS_SERVER,
+    DHCP_OPT_NTP_SERVER,
+    DHCP_OPT_SERVER_ID,
+    DHCP_OPT_TFTP_SERVER,
+    DHCP_OPT_CLASSLESS_STATIC_ROUTE,
+    DHCP_OPT_MS_CLASSLESS_STATIC_ROUTE,
+    DHCP_OPT_IP_FORWARD_ENABLE,
+    DHCP_OPT_ROUTER_DISCOVERY,
+    DHCP_OPT_ETHERNET_ENCAP,
+    DHCP_OPT_DEFAULT_TTL,
+    DHCP_OPT_TCP_TTL,
+    DHCP_OPT_MTU,
+    DHCP_OPT_LEASE_TIME,
+    DHCP_OPT_T1,
+    DHCP_OPT_T2
+};
+
+static void
+check_and_add_supported_dhcp_opts_to_sb_db(struct northd_context *ctx)
+{
+    static bool nothing_to_add = false;
+
+    if (nothing_to_add) {
+        return;
+    }
+
+    struct hmap dhcp_opts_to_add = HMAP_INITIALIZER(&dhcp_opts_to_add);
+    for (size_t i = 0; (i < sizeof(supported_dhcp_opts) /
+                            sizeof(supported_dhcp_opts[0])); i++) {
+        hmap_insert(&dhcp_opts_to_add, &supported_dhcp_opts[i].hmap_node,
+                    dhcp_opt_hash(supported_dhcp_opts[i].name));
+    }
+
+    const struct sbrec_dhcp_options *opt_row, *opt_row_next;
+    SBREC_DHCP_OPTIONS_FOR_EACH_SAFE(opt_row, opt_row_next, ctx->ovnsb_idl) {
+        struct dhcp_opts_map *dhcp_opt =
+            dhcp_opts_find(&dhcp_opts_to_add, opt_row->name);
+        if (dhcp_opt) {
+            hmap_remove(&dhcp_opts_to_add, &dhcp_opt->hmap_node);
+        }
+        else {
+            sbrec_dhcp_options_delete(opt_row);
+        }
+    }
+
+    if (!dhcp_opts_to_add.n) {
+        nothing_to_add = true;
+    }
+
+    struct dhcp_opts_map *opt;
+    HMAP_FOR_EACH_POP(opt, hmap_node, &dhcp_opts_to_add) {
+        struct sbrec_dhcp_options *sbrec_dhcp_option =
+            sbrec_dhcp_options_insert(ctx->ovnsb_txn);
+        sbrec_dhcp_options_set_name(sbrec_dhcp_option, opt->name);
+        sbrec_dhcp_options_set_code(sbrec_dhcp_option, opt->code);
+        sbrec_dhcp_options_set_type(sbrec_dhcp_option, opt->type);
+    }
+
+    hmap_destroy(&dhcp_opts_to_add);
+}
+
 static char *default_nb_db_;
 
 static const char *
@@ -2565,6 +2812,10 @@ main(int argc, char *argv[])
     add_column_noalert(ovnsb_idl_loop.idl, &sbrec_port_binding_col_options);
     add_column_noalert(ovnsb_idl_loop.idl, &sbrec_port_binding_col_mac);
     ovsdb_idl_add_column(ovnsb_idl_loop.idl, &sbrec_port_binding_col_chassis);
+    ovsdb_idl_add_table(ovnsb_idl_loop.idl, &sbrec_table_dhcp_options);
+    add_column_noalert(ovnsb_idl_loop.idl, &sbrec_dhcp_options_col_code);
+    add_column_noalert(ovnsb_idl_loop.idl, &sbrec_dhcp_options_col_type);
+    add_column_noalert(ovnsb_idl_loop.idl, &sbrec_dhcp_options_col_name);
 
     /* Main loop. */
     exiting = false;
@@ -2578,7 +2829,9 @@ main(int argc, char *argv[])
 
         ovnnb_db_run(&ctx);
         ovnsb_db_run(&ctx);
-
+        if (ctx.ovnsb_txn) {
+            check_and_add_supported_dhcp_opts_to_sb_db(&ctx);
+        }
         unixctl_server_run(unixctl);
         unixctl_server_wait(unixctl);
         if (exiting) {
diff --git a/ovn/ovn-nb.ovsschema b/ovn/ovn-nb.ovsschema
index fa21b30..d7f72a7 100644
--- a/ovn/ovn-nb.ovsschema
+++ b/ovn/ovn-nb.ovsschema
@@ -1,7 +1,7 @@
 {
     "name": "OVN_Northbound",
-    "version": "2.1.2",
-    "cksum": "429668869 5325",
+    "version": "2.2.0",
+    "cksum": "2504037701 6138",
     "tables": {
         "Logical_Switch": {
             "columns": {
@@ -16,6 +16,11 @@
                                           "refType": "strong"},
                                   "min": 0,
                                   "max": "unlimited"}},
+                "subnets": {"type": {"key": {"type": "uuid",
+                                             "refTable": "Subnet",
+                                             "refType": "strong"},
+                                  "min": 0,
+                                  "max": "unlimited"}},
                 "external_ids": {
                     "type": {"key": "string", "value": "string",
                              "min": 0, "max": "unlimited"}}},
@@ -63,6 +68,16 @@
                     "type": {"key": "string", "value": "string",
                              "min": 0, "max": "unlimited"}}},
             "isRoot": false},
+        "Subnet": {
+            "columns": {
+                "cidr": {"type": "string"},
+                "ip_version": {"type": {"key": {"type": "integer",
+                                                 "enum": ["set", [4, 6]]}}},
+                "gateway_ip": {"type": "string"},
+                "enable_dhcp": {"type": "boolean"},
+                "dhcp_options": {"type": {"key": "string", "value": "string",
+                                          "min": 0, "max": "unlimited"}}},
+            "isRoot": false},
         "Logical_Router": {
             "columns": {
                 "name": {"type": "string"},
diff --git a/ovn/ovn-nb.xml b/ovn/ovn-nb.xml
index 41092f1..c00160f 100644
--- a/ovn/ovn-nb.xml
+++ b/ovn/ovn-nb.xml
@@ -73,11 +73,18 @@
       Access control rules that apply to packets within the logical switch.
     </column>
 
+    <column name="subnets">
+      <p>
+        Subnets configured to the logical switch.
+      </p>
+    </column>
+
     <group title="Common Columns">
       <column name="external_ids">
         See <em>External IDs</em> at the beginning of this document.
       </column>
     </group>
+
   </table>
 
   <table name="Logical_Port" title="L2 logical switch port">
@@ -205,6 +212,28 @@
           interface, in kb.
         </column>
       </group>
+
+      <group title="DHCP Options">
+        <p>
+          These options apply to logical ports with <ref column="type"/> having
+          (empty string)
+        </p>
+
+        <column name="options" key="dhcp_opt_OPTION_NAME">
+          Each logical port can override the DHCP options defined in the
+          <ref column="dhcp_options"/> of <ref table="Subnet"/>
+          by defining them in this column with the prefix "dhcp_opt_".
+          Please see the <ref column="dhcp_options"/> of
+          <ref table="Subnet"/> for supported DHCP options.
+
+          Example: key="dhcp_opt_mtu", value="1300"
+        </column>
+
+        <column name="options" key="dhcp_disabled">
+          If this is defined, <code>ovn-northd</code> will disable the native
+          DHCP responder for the logical port.
+        </column>
+      </group>
     </group>
 
     <group title="Containers">
@@ -598,6 +627,289 @@
     </group>
   </table>
 
+  <table name="Subnet" title="L2 logical switch subnet">
+    <p>
+      A subnet within an L2 logical switch. This is an optional table. CMS
+      can add the rows to this table to define the subnets belonging to logical
+      switch.
+    </p>
+
+    <column name="cidr">
+      <p>
+        cidr of the subnet.
+      </p>
+    </column>
+
+    <column name="ip_version">
+      <p>
+        IP version of the subnet -4 or 6.
+      </p>
+    </column>
+
+    <column name="gateway_ip">
+      <p>
+        Gateway ip of the subnet.
+      </p>
+    </column>
+
+    <column name="enable_dhcp">
+      <p>
+        If set to true, native DHCP support will be enabled for all the
+        logical ports having the IPv4 address from the subnet cidr.
+      </p>
+    </column>
+
+    <group title="DHCP options">
+      <column name="dhcp_options">
+        <p>
+          OVN implements a native DHCP support which caters to the common
+          use case of providing an IP address to a booting instance by
+          providing stateless replies to DHCP requests based on statically
+          configured address mappings. To do this it allows a short list of
+          DHCP options to be configured and applied at each compute host
+          running ovn-controller.
+        </p>
+
+        <p>
+          CMS should define the set of DHCP options as key/value pairs.
+          The defined DHCP options will be include in the DHCP response to the
+          DHCP DISCOVER/REQUEST packet from the logical ports having the IPv4
+          addresses in the <ref column="cidr"/>.
+        </p>
+      </column>
+
+      <group title="Supported DHCP options">
+        <p>
+          Below are the supported DHCP options whose values are IPv4 address
+          or addresses. If the value has more than one IPv4 address, then it
+          should be enclosed within '{}' braces. Please refer to the
+          RFC 2132 <code>"https://tools.ietf.org/html/rfc2132"</code> for
+          more details on the DHCP options and their codes.
+        </p>
+
+        <column name="dhcp_options" key="netmask">
+          <p>
+            The DHCP option code for this option is 1.
+          </p>
+
+          <p>
+            Example. key="netmask", value="255.255.255.0"
+          </p>
+        </column>
+
+        <column name="dhcp_options" key="router">
+          <p>
+            The DHCP option code for this option is 3.
+          </p>
+        </column>
+
+        <column name="dhcp_options" key="dns_server">
+          <p>
+            The DHCP option code for this option is 6.
+          </p>
+        </column>
+
+        <column name="dhcp_options" key="log_server">
+          <p>
+            The DHCP option code for this option is 7.
+          </p>
+        </column>
+
+        <column name="dhcp_options" key="lpr_server">
+          <p>
+            The DHCP option code for this option is 9.
+          </p>
+        </column>
+
+        <column name="dhcp_options" key="swap_server">
+          <p>
+            The DHCP option code for this option is 16.
+          </p>
+        </column>
+
+        <column name="dhcp_options" key="policy_filter">
+          <p>
+            The DHCP option code for this option is 21.
+          </p>
+        </column>
+
+        <column name="dhcp_options" key="router_solicitation">
+          <p>
+            The DHCP option code for this option is 32.
+          </p>
+        </column>
+
+        <column name="dhcp_options" key="nis_server">
+          <p>
+            The DHCP option code for this option is 41.
+          </p>
+        </column>
+
+        <column name="dhcp_options" key="ntp_server">
+          <p>
+            The DHCP option code for this option is 42.
+          </p>
+        </column>
+
+        <column name="dhcp_options" key="server_id">
+          <p>
+            The DHCP option code for this option is 54.
+          </p>
+        </column>
+
+        <column name="dhcp_options" key="tftp_server">
+          <p>
+            The DHCP option code for this option is 66.
+          </p>
+        </column>
+
+        <column name="dhcp_options" key="classless_static_route">
+          <p>
+            The DHCP option code for this option is 121.
+          </p>
+
+          <p>
+             This option can contain one or more static routes, each of which
+             consists of a destination descriptor and the IP address of the
+             router that should be used to reach that destination. Please see
+             RFC 3442 for more details.
+          </p>
+
+          <p>
+            Example.
+            key="classless_static_route"
+            value="{30.0.0.0/24,10.0.0.10, 0.0.0.0/0,10.0.0.1}"
+          </p>
+        </column>
+
+        <column name="dhcp_options" key="ms_classless_static_route">
+          <p>
+            The DHCP option code for this option is 249. This option is
+            similar to <code>classless_static_route</code> supported by
+            Microsoft Windows DHCP clients.
+          </p>
+        </column>
+
+        <column name="dhcp_options" key="server_mac">
+          <p>
+            <code>eth.src</code> will be set to this value in the DHCP
+            response packet.
+          </p>
+        </column>
+      </group>
+
+      <group title="Other supported DHCP options">
+        <column name="dhcp_options" key="ip_forward_enable">
+          <p>
+            The DHCP option code for this option is 19.
+          </p>
+
+          <p>
+            The value of this DHCP option is of type <code>bool</code>.
+
+            Example. key="ip_forward_enable", value="1"
+          </p>
+        </column>
+
+        <column name="dhcp_options" key="router_discovery">
+          <p>
+            The DHCP option code for this option is 31.
+          </p>
+
+          <p>
+            The value of this DHCP option is of type <code>bool</code>.
+          </p>
+        </column>
+
+        <column name="dhcp_options" key="ethernet_encap">
+          <p>
+            The DHCP option code for this option is 36.
+          </p>
+
+          <p>
+            The value of this DHCP option is of type <code>bool</code>.
+          </p>
+        </column>
+
+        <column name="dhcp_options" key="default_ttl">
+          <p>
+            The DHCP option code for this option is 23.
+          </p>
+
+          <p>
+            The value of this DHCP option is of type <code>uint8</code>.
+
+            Example. key="default_ttl", value="128".
+          </p>
+        </column>
+
+        <column name="dhcp_options" key="tcp_ttl">
+          <p>
+            The DHCP option code for this option is 37.
+          </p>
+
+          <p>
+            The value of this DHCP option is of type <code>uint8</code>.
+          </p>
+        </column>
+
+        <column name="dhcp_options" key="mtu">
+          <p>
+            The DHCP option code for this option is 26.
+          </p>
+
+          <p>
+            The value of this DHCP option is of type <code>uint16</code>.
+          </p>
+        </column>
+
+        <column name="dhcp_options" key="lease_time">
+          <p>
+            The DHCP option code for this option is 51.
+          </p>
+
+          <p>
+            The value of this DHCP option is of type <code>uint32</code>.
+
+            Example. key="lease_time", value="42000"
+          </p>
+        </column>
+
+        <column name="dhcp_options" key="T1">
+          <p>
+            The DHCP option code for this option is 58.
+          </p>
+
+          <p>
+            The value of this DHCP option is of type <code>uint32</code>.
+
+            Example. key="T1", value="30000"
+          </p>
+        </column>
+
+        <column name="dhcp_options" key="T2">
+          <p>
+            The DHCP option code for this option is 59.
+          </p>
+
+          <p>
+            The value of this DHCP option is of type <code>uint32</code>.
+
+            Example. key="T2", value="40000"
+          </p>
+        </column>
+      </group>
+
+      <group title="Mandatory DHCP options">
+        <p>
+          DHCP options <code>"server_id"</code>, <code>"server_mac"</code>
+          and <code>"lease_time"</code> are mandatory options which CMS should
+          define for <code>OVN</code> to support native DHCP.
+        </p>
+      </group>
+    </group>
+  </table>
+
   <table name="Logical_Router" title="L3 logical router">
     <p>
       Each row represents one L3 logical router.
@@ -645,7 +957,7 @@
         <code>Open_vSwitch</code> table of Open_vSwitch database.
       </column>
     </group>
-    
+
     <group title="Common Columns">
       <column name="external_ids">
         See <em>External IDs</em> at the beginning of this document.
diff --git a/ovn/utilities/ovn-nbctl.8.xml b/ovn/utilities/ovn-nbctl.8.xml
index 8375ab7..408badb 100644
--- a/ovn/utilities/ovn-nbctl.8.xml
+++ b/ovn/utilities/ovn-nbctl.8.xml
@@ -64,6 +64,35 @@
       </dd>
     </dl>
 
+    <h1>Subnet Commands</h1>
+
+    <dl>
+      <dt><code>subnet-add</code> <var>lswitch</var> <var>cidr</var> <var>gateway_ip</var> [<var>enable_dhcp</var>]</dt>
+      <dd>
+        Adds a Subnet to the <var>lswitch</var>
+      </dd>
+
+      <dt><code>subnet-del</code> <var>subnet</var></dt>
+      <dd>
+        Deletes the subnet referred by <var>subnet</var> UUID.
+      </dd>
+
+      <dt><code>subnet-list</code> <var>lswitch</var></dt>
+      <dd>
+        Lists all the subnets belonging to the <var>lswitch</var>
+      </dd>
+
+      <dt><code>subnet-set-dhcp-options</code> <var>subnet</var> [<var>key=value</var>]...</dt>
+      <dd>
+        Sets the DHCP options for the <var>subnet</var>
+      </dd>
+
+      <dt><code>subnet-get-dhcp-options</code> <var>subnet</var></dt>
+      <dd>
+        Lists the DHCP options of the <var>subnet</var>
+      </dd>
+    </dl>
+
     <h1>ACL Commands</h1>
     <dl>
       <dt>[<code>--log</code>] <code>acl-add</code> <var>lswitch</var> <var>direction</var> <var>priority</var> <var>match</var> <var>action</var></dt>
diff --git a/ovn/utilities/ovn-nbctl.c b/ovn/utilities/ovn-nbctl.c
index d267829..0887961 100644
--- a/ovn/utilities/ovn-nbctl.c
+++ b/ovn/utilities/ovn-nbctl.c
@@ -333,6 +333,18 @@ Logical port commands:\n\
                             Set options related to the type of LPORT\n\
   lport-get-options LPORT   Get the type specific options for LPORT\n\
 \n\
+Subnet commands:\n\
+  subnet-add LSWITCH CIDR GATEWAYIP [ENABLE_DHCP]\n\
+                            add a subnet to LSWITCH\n\
+  subnet-del SUBNET_UUID\n\
+                            remove subnet from its attached LSWITCH\n\
+  subnet-list LSWITCH\n\
+                            list subnets attached to LSWITCH\n\
+  subnet-set-dhcp-options SUBNET_UUID KEY=VALUE [KEY=VALUE]...\n\
+                            Set DHCP options for the SUBNET\n\
+  subnet-get-dhcp-options SUBNET_UUID\n\
+                            Get the DHCP options for the SUBNET\n\
+\n\
 %s\
 \n\
 Options:\n\
@@ -502,6 +514,7 @@ nbctl_lswitch_list(struct ctl_context *ctx)
     smap_destroy(&lswitches);
     free(nodes);
 }
+
 
 static const struct nbrec_logical_port *
 lport_by_name_or_uuid(struct ctl_context *ctx, const char *id,
@@ -922,6 +935,175 @@ nbctl_lport_get_options(struct ctl_context *ctx)
     }
 }
 
+static void
+nbctl_subnet_add(struct ctl_context *ctx)
+{
+    const struct nbrec_logical_switch *lswitch;
+    lswitch = lswitch_by_name_or_uuid(ctx, ctx->argv[1], true);
+
+    /* Validate the cidr */
+    int64_t ip_version = 4;
+    ovs_be32 ip;
+    unsigned int plen;
+    char *error = ip_parse_cidr(ctx->argv[2], &ip, &plen);
+    if (error){
+        /* check if its IPv6 cidr */
+        free(error);
+        struct in6_addr ipv6;
+        error = ipv6_parse_cidr(ctx->argv[2], &ipv6, &plen);
+        if (error) {
+            free(error);
+            VLOG_WARN("Invalid cidr format '%s'", ctx->argv[2]);
+            return;
+        }
+        ip_version = 6;
+    }
+
+    /* Validate the gateway ip format */
+    bool valid_gatewap_ip = false;
+    if (ip_version == 4) {
+        valid_gatewap_ip = ip_parse(ctx->argv[3], &ip);
+    }
+    else {
+        struct in6_addr ipv6;
+        valid_gatewap_ip = ipv6_parse(ctx->argv[3], &ipv6);
+    }
+
+    if (!valid_gatewap_ip) {
+        VLOG_WARN("Invalid Gateway ip format '%s'", ctx->argv[3]);
+        return;
+    }
+
+    bool enable_dhcp = true;
+    if (ctx->argc == 5) {
+         if (!strcmp(ctx->argv[4], "false")) {
+             enable_dhcp = false;
+         }
+    }
+
+    struct nbrec_subnet *subnet = nbrec_subnet_insert(ctx->txn);
+    nbrec_subnet_set_cidr(subnet, ctx->argv[2]);
+    nbrec_subnet_set_ip_version(subnet, ip_version);
+    nbrec_subnet_set_gateway_ip(subnet, ctx->argv[3]);
+    nbrec_subnet_set_enable_dhcp(subnet, enable_dhcp);
+
+    /* Insert the subnet into the logical switch */
+    nbrec_logical_switch_verify_subnets(lswitch);
+    struct nbrec_subnet **new_subnets = xmalloc(sizeof *new_subnets *
+                                                (lswitch->n_subnets + 1));
+    memcpy(new_subnets, lswitch->subnets,
+           sizeof *new_subnets * lswitch->n_subnets);
+    new_subnets[lswitch->n_subnets] = subnet;
+    nbrec_logical_switch_set_subnets(lswitch, new_subnets,
+                                     lswitch->n_subnets + 1);
+    free(new_subnets);
+}
+
+static void
+remove_subnet(const struct nbrec_logical_switch *lswitch, size_t idx)
+{
+    const struct nbrec_subnet *subnet = lswitch->subnets[idx];
+
+    struct nbrec_subnet **new_subnets
+        = xmemdup(lswitch->subnets, sizeof *new_subnets * lswitch->n_subnets);
+    new_subnets[idx] = new_subnets[lswitch->n_subnets - 1];
+    nbrec_logical_switch_verify_subnets(lswitch);
+    nbrec_logical_switch_set_subnets(lswitch, new_subnets, lswitch->n_subnets - 1);
+    free(new_subnets);
+
+    nbrec_subnet_delete(subnet);
+}
+
+static const struct nbrec_subnet *
+subnet_get(struct ctl_context *ctx, char *id)
+{
+    struct uuid subnet_uuid;
+    if (uuid_from_string(&subnet_uuid, id)) {
+        return nbrec_subnet_get_for_uuid(ctx->idl, &subnet_uuid);
+    }
+
+    return NULL;
+}
+
+static void
+nbctl_subnet_del(struct ctl_context *ctx)
+{
+    const struct nbrec_subnet *subnet = subnet_get(ctx, ctx->argv[1]);
+    if (!subnet) {
+        VLOG_WARN("subnet not found for '%s'", ctx->argv[1]);
+        return;
+    }
+
+    /* Find the switch that contains 'subnet', then delete it. */
+    const struct nbrec_logical_switch *lswitch;
+    NBREC_LOGICAL_SWITCH_FOR_EACH (lswitch, ctx->idl) {
+        for (size_t i = 0; i < lswitch->n_subnets; i++) {
+            if (lswitch->subnets[i] == subnet) {
+                remove_subnet(lswitch, i);
+                return;
+            }
+        }
+    }
+
+    VLOG_WARN("subnet %s is not part of any logical switch",
+              ctx->argv[1]);
+}
+
+static void
+nbctl_subnet_list(struct ctl_context *ctx)
+{
+    const struct nbrec_logical_switch *lswitch;
+    lswitch = lswitch_by_name_or_uuid(ctx, ctx->argv[1], false);
+    if (!lswitch) {
+        return;
+    }
+
+    for (size_t i = 0; i < lswitch->n_subnets; i++) {
+        const struct nbrec_subnet *subnet = lswitch->subnets[i];
+        ds_put_format(&ctx->output, UUID_FMT " (%s)\n",
+                      UUID_ARGS(&subnet->header_.uuid), subnet->cidr);
+    }
+}
+
+static void
+nbctl_subnet_set_dhcp_options(struct ctl_context *ctx)
+{
+    const struct nbrec_subnet *subnet = subnet_get(ctx, ctx->argv[1]);
+    if (!subnet) {
+        VLOG_WARN("subnet not found for '%s'", ctx->argv[1]);
+        return;
+    }
+
+    struct smap dhcp_options = SMAP_INITIALIZER(&dhcp_options);
+    for (size_t i = 2; i < ctx->argc; i++) {
+        char *key, *value;
+        value = xstrdup(ctx->argv[i]);
+        key = strsep(&value, "=");
+        if (value) {
+            smap_add(&dhcp_options, key, value);
+        }
+        free(key);
+    }
+
+    nbrec_subnet_set_dhcp_options(subnet, &dhcp_options);
+    smap_destroy(&dhcp_options);
+}
+
+static void
+nbctl_subnet_get_dhcp_options(struct ctl_context *ctx)
+{
+    const struct nbrec_subnet *subnet = subnet_get(ctx, ctx->argv[1]);
+    if (!subnet) {
+        VLOG_WARN("subnet not found for '%s'", ctx->argv[1]);
+        return;
+    }
+
+    struct smap_node *node;
+    SMAP_FOR_EACH(node, &subnet->dhcp_options) {
+        ds_put_format(&ctx->output, "%s=%s\n", node->key, node->value);
+    }
+}
+
 enum {
     DIR_FROM_LPORT,
     DIR_TO_LPORT
@@ -1120,6 +1302,10 @@ static const struct ctl_table_class tables[] = {
      {{NULL, NULL, NULL},
       {NULL, NULL, NULL}}},
 
+    {&nbrec_table_subnet,
+     {{&nbrec_table_subnet, NULL, NULL},
+     {NULL, NULL, NULL}}},
+
     {&nbrec_table_logical_router,
      {{&nbrec_table_logical_router, &nbrec_logical_router_col_name, NULL},
       {NULL, NULL, NULL}}},
@@ -1386,6 +1572,16 @@ static const struct ctl_command_syntax nbctl_commands[] = {
     { "lport-get-options", 1, 1, "LPORT", NULL, nbctl_lport_get_options, NULL,
       "", RO },
 
+    /* subnet commands */
+    {"subnet-add", 3, 4, "LSWITCH CIDR GATEWAY_IP ENABLE_DHCP", NULL,
+      nbctl_subnet_add, NULL, "", RW },
+    {"subnet-del", 1, 1, "SUBNET", NULL, nbctl_subnet_del, NULL, "", RW},
+    {"subnet-list", 1, 1, "LSWITCH", NULL, nbctl_subnet_list, NULL, "", RO},
+    {"subnet-set-dhcp-options", 1, INT_MAX, "SUBNET KEY=VALUE [KEY=VALUE]...",
+      NULL, nbctl_subnet_set_dhcp_options, NULL, "", RW },
+    {"subnet-get-dhcp-options", 1, 1, "SUBNET", NULL,
+      nbctl_subnet_get_dhcp_options, NULL, "", RO },
+
     {NULL, 0, 0, NULL, NULL, NULL, NULL, "", RO},
 };
 
diff --git a/tests/ovn.at b/tests/ovn.at
index c36ecfc..9a9668d 100644
--- a/tests/ovn.at
+++ b/tests/ovn.at
@@ -3106,3 +3106,253 @@ AT_CHECK([ovstest test-ovn-put-dhcp-opts-action reg0 $dhcp_options $expected_dhc
          [1], [ignore])
 
 AT_CLEANUP
+
+AT_SETUP([ovn -- dhcp : 1 HV, 2 LS, 3 lports])
+AT_KEYWORDS([dhcp])
+AT_SKIP_IF([test $HAVE_PYTHON = no])
+ovn_start
+
+ovn-nbctl lswitch-add ls1
+ovn-nbctl lswitch-add ls2
+
+ovn-nbctl -- --id=@s1 create Subnet cidr=10.0.0.0/24 gateway_ip=10.0.0.1 \
+ip_version=4 enable_dhcp=true dhcp_options="\"server_id\"=\"10.0.0.1\" \
+\"server_mac\"=\"00:00:00:10:00:01\" \"lease_time\"=\"36\"" \
+-- add Logical_Switch ls1 subnets @s1
+
+ovn-nbctl lport-add ls1 ls1-lp1 \
+-- lport-set-addresses ls1-lp1 "f0:00:00:00:00:01 10.0.0.4"
+
+ovn-nbctl lport-set-port-security ls1-lp1 "f0:00:00:00:00:01 10.0.0.4"
+
+ovn-nbctl lport-add ls2 ls2-lp1 \
+-- lport-set-addresses ls2-lp1 "f0:00:00:00:00:02 20.0.0.3"
+
+ovn-nbctl lport-set-port-security ls2-lp1 "f0:00:00:00:00:02 20.0.0.3"
+
+ovn-nbctl lport-add ls1 ls1-lp2 \
+-- lport-set-addresses ls1-lp2 "f0:00:00:00:00:03 10.0.0.5"
+
+ovn-nbctl lport-set-port-security ls1-lp2 "f0:00:00:00:00:03 10.0.0.5"
+#disable dhcp on lport - ls1-lp2
+ovn-nbctl lport-set-options ls1-lp2 "dhcp_disabled=true"
+
+net_add n1
+sim_add hv1
+
+as hv1
+ovs-vsctl add-br br-phys
+ovn_attach n1 br-phys 192.168.0.1
+ovs-vsctl -- add-port br-int hv1-vif1 -- \
+    set interface hv1-vif1 external-ids:iface-id=ls1-lp1 \
+    options:tx_pcap=hv1/vif1-tx.pcap \
+    options:rxq_pcap=hv1/vif1-rx.pcap \
+    ofport-request=1
+ovs-vsctl -- add-port br-int hv1-vif2 -- \
+    set interface hv1-vif2 external-ids:iface-id=ls2-lp1 \
+    options:tx_pcap=hv1/vif2-tx.pcap \
+    options:rxq_pcap=hv1/vif2-rx.pcap \
+    ofport-request=2
+
+ovs-vsctl -- add-port br-int hv1-vif3 -- \
+    set interface hv1-vif3 external-ids:iface-id=ls1-lp2 \
+    options:tx_pcap=hv1/vif3-tx.pcap \
+    options:rxq_pcap=hv1/vif3-rx.pcap \
+    ofport-request=3
+
+ovn_populate_arp
+
+sleep 2
+
+# This shell function sends a DHCP request packet
+# test_dhcp INPORT SRC_MAC DHCP_TYPE OUTPORT...
+# The OUTPORTs (zero or more) list the VIFs on which the original DHCP
+# packet should be received twice (one from ovn-controller and the other
+# from the "ovs-ofctl monitor br-int resume"
+test_dhcp() {
+    local inport=$1 src_mac=$2 dhcp_type=$3
+    local request=ffffffffffff${src_mac}080045100110000000008011000000000000ffffffff
+    # udp header and dhcp header
+    request+=0044004300fc0000
+    request+=010106006359aa760000000000000000000000000000000000000000${src_mac}
+    # client hardware padding
+    request+=00000000000000000000
+    # server hostname
+    request+=0000000000000000000000000000000000000000000000000000000000000000
+    request+=0000000000000000000000000000000000000000000000000000000000000000
+    # boot file name
+    request+=0000000000000000000000000000000000000000000000000000000000000000
+    request+=0000000000000000000000000000000000000000000000000000000000000000
+    request+=0000000000000000000000000000000000000000000000000000000000000000
+    request+=0000000000000000000000000000000000000000000000000000000000000000
+    # dhcp magic cookie
+    request+=63825363
+    # dhcp message type
+    request+=3501${dhcp_type}ff
+    shift; shift; shift;
+    for outport; do
+        # the packet will be received twice, one from ovn-controller
+        # and the other from ovs-ofctl monitor br-int resume
+        echo $request | trim_zeros >> $outport.expected
+        echo $request | trim_zeros >> $outport.expected
+    done
+    as hv1 ovs-appctl netdev-dummy/receive hv1-vif$inport $request
+}
+
+reset_pcap_file() {
+    local iface=$1
+    local pcap_file=$2
+    ovs-vsctl -- set Interface $iface options:tx_pcap=dummy-tx.pcap \
+options:rxq_pcap=dummy-rx.pcap
+    rm -f ${pcap_file}*.pcap
+    ovs-vsctl -- set Interface $iface options:tx_pcap=${pcap_file}-tx.pcap \
+options:rxq_pcap=${pcap_file}-rx.pcap
+}
+
+trim_zeros() {
+    sed 's/\(00\)\{1,\}$//'
+}
+
+AT_CAPTURE_FILE([ofctl_monitor0.log])
+as hv1 ovs-ofctl monitor br-int resume --detach --no-chdir \
+--pidfile=ovs-ofctl0.pid 2> ofctl_monitor0.log
+
+echo "---------NB dump-----"
+ovn-nbctl show
+echo "---------------------"
+echo "---------SB dump-----"
+ovn-sbctl list datapath_binding
+echo "---------------------"
+ovn-sbctl list logical_flow
+echo "---------------------"
+
+echo "---------------------"
+ovn-sbctl dump-flows
+echo "---------------------"
+
+echo "------ hv1 dump ----------"
+as hv1 ovs-ofctl dump-flows br-int
+
+#send DHCP DISCOVER
+test_dhcp 1 f00000000001 01
+
+# Wait for the expected number of NXT_RESUMEs to be logged.
+echo "waiting for 1 NXT_RESUMEs..."
+OVS_WAIT_UNTIL([test 1 = `cat ofctl_monitor*.log | grep -c NXT_RESUME`])
+
+# Extract the dhcp options in userdata. It will be in the format
+# ' userdata=00.00.00.02.00.00.00.00.00.00.00.00.0a.00.00.04.01.04.ff......'
+# Skip 59 columns - userdata=<DHCP_ACTION_CODE (8 B)><REG-IDX (4B)><OFFER-IP (4 B)>
+dhcp_opts_in_user_data=`cat ofctl_monitor0.log  | grep userdata | cut -c 59-`
+
+AT_CHECK([ovstest test-ovn-dhcp hv1/vif1-tx.pcap 10.0.0.4 10.0.0.1 \
+          00:00:00:10:00:01 1 $dhcp_opts_in_user_data], [0], [ignore])
+
+# ovs-ofctl also resumes the packets and this causes other ports to receive
+# the DHCP request packet. So reset the pcap files so that its easier
+# for "test-ovn-dhcp" to validate the DHCP reply packet
+reset_pcap_file hv1-vif1 hv1/vif1
+reset_pcap_file hv1-vif2 hv1/vif2
+reset_pcap_file hv1-vif3 hv1/vif3
+
+# run dhcp test on ls2-lp1. There are no dhcp options defined. So the dhcp
+# packet should not be handled by ovn-controller
+test_dhcp 2 f00000000002 01
+
+# NXT_RESUMEs should be 1.
+echo "waiting for 1 NXT_RESUMEs..."
+cat ofctl_monitor*.log
+echo "###########################################"
+
+OVS_WAIT_UNTIL([test 1 = `cat ofctl_monitor*.log | grep -c NXT_RESUME`])
+
+ovn-nbctl subnet-add ls2 20.0.0.0/24 20.0.0.1 true
+subnet_id=`ovn-nbctl subnet-list ls2 | cut -c -37`
+
+ovn-nbctl subnet-set-dhcp-options $subnet_id "server_id=20.0.0.1" \
+"lease_time=4500"
+
+sleep 1
+
+# there is no "server_mac" field in the dhcp options. So there should be no
+# dhcp flow for this port
+OVS_WAIT_UNTIL([test 1 = `as hv1 ovs-ofctl dump-flows br-int | \
+grep -c "actions=controller(userdata=00.00.00.02.00.00.00"`])
+
+ovn-nbctl subnet-set-dhcp-options $subnet_id "server_id=20.0.0.1" \
+"server_mac=00:00:00:10:00:02" "lease_time=4500"
+
+sleep 2
+OVS_WAIT_UNTIL([test 2 = `as hv1 ovs-ofctl dump-flows br-int | \
+grep -c "actions=controller(userdata=00.00.00.02.00.00.00"`])
+
+test_dhcp 2 f00000000002 03
+
+# NXT_RESUMEs should be 2.
+echo "waiting for 2 NXT_RESUMEs..."
+OVS_WAIT_UNTIL([test 2 = `cat ofctl_monitor*.log | grep -c NXT_RESUME`])
+
+dhcp_opts_in_user_data=`cat ofctl_monitor0.log  | grep userdata | \
+cut -c 59- | sed '1d'`
+
+AT_CHECK([ovstest test-ovn-dhcp hv1/vif2-tx.pcap 20.0.0.3 20.0.0.1 \
+          00:00:00:10:00:02 3 $dhcp_opts_in_user_data], [0], [ignore])
+
+reset_pcap_file hv1-vif1 hv1/vif1
+reset_pcap_file hv1-vif2 hv1/vif2
+reset_pcap_file hv1-vif3 hv1/vif3
+
+#enable dhcp on lport - ls1-lp2
+ovn-nbctl lport-set-options ls1-lp2 "dhcp_disabled=false"
+
+sleep 2
+
+OVS_WAIT_UNTIL([test 3 = `as hv1 ovs-ofctl dump-flows br-int | \
+grep -c "actions=controller(userdata=00.00.00.02.00.00.00"`])
+
+#send invalid dhcp packet on hv1/vif3 (ie ls1-lp3).
+# This packet should be received by hv1/vif1 (ls1-lp1)
+test_dhcp 3 f00000000003 04 1
+
+# NXT_RESUMEs should be 3.
+echo "waiting for 3 NXT_RESUMEs..."
+OVS_WAIT_UNTIL([test 3 = `cat ofctl_monitor*.log | grep -c NXT_RESUME`])
+
+# vif3-tx.pcap should not have received the DHCP reply packet
+$PYTHON "$top_srcdir/utilities/ovs-pcap.in" hv1/vif3-tx.pcap | trim_zeros > 3.packets
+AT_CHECK([cat 3.packets], [0], [])
+
+# vif1-tx.pcap should have received the DHCP (invalid) request packet
+$PYTHON "$top_srcdir/utilities/ovs-pcap.in" hv1/vif1-tx.pcap | trim_zeros > 1.packets
+cat 1.expected > expout
+AT_CHECK([cat 1.packets], [0], [expout])
+
+
+echo "---------NB dump-----"
+ovn-nbctl show
+echo "---------SB dump-----"
+ovn-sbctl list datapath_binding
+echo "---------------------"
+ovn-sbctl list logical_flow
+ovn-sbctl list port_binding
+echo "---------------------"
+ovn-sbctl dump-flows
+echo "---------------------"
+
+echo "------ hv1 dump ----------"
+as hv1 ovs-ofctl dump-flows br-int
+
+as ovn-sb
+OVS_APP_EXIT_AND_WAIT([ovsdb-server])
+
+as ovn-nb
+OVS_APP_EXIT_AND_WAIT([ovsdb-server])
+
+as northd
+OVS_APP_EXIT_AND_WAIT([ovn-northd])
+
+as main
+OVS_APP_EXIT_AND_WAIT([ovs-vswitchd])
+OVS_APP_EXIT_AND_WAIT([ovsdb-server])
+
+AT_CLEANUP
diff --git a/tests/test-ovn-dhcp.c b/tests/test-ovn-dhcp.c
index 79cee08..b879a03 100644
--- a/tests/test-ovn-dhcp.c
+++ b/tests/test-ovn-dhcp.c
@@ -16,6 +16,10 @@
 #include <assert.h>
 #include <config.h>
 #include "command-line.h"
+#include "dp-packet.h"
+#include <errno.h>
+#include "flow.h"
+#include "lib/dhcp.h"
 #include "openvswitch/ofp-actions.h"
 #include "ovstest.h"
 #include "ovn/lib/actions.h"
@@ -23,6 +27,7 @@
 #include "ovn/lib/expr.h"
 #include "ovn/lib/logical-fields.h"
 #include "shash.h"
+#include "pcap-file.h"
 
 static void
 add_logical_register(struct shash *symtab, enum mf_field_id id)
@@ -146,4 +151,134 @@ test_put_dhcp_opts_action(int argc OVS_UNUSED, char *argv[] OVS_UNUSED)
     exit(0);
 }
 
+static void
+test_ovn_dhcp_main(int argc OVS_UNUSED, char *argv[] OVS_UNUSED)
+{
+    if (argc != 7) {
+        printf("Usage: %s pcap-file offer-ip server-ip"
+                " server-mac dhcp-type userdata\n", argv[0]);
+        exit(1);
+    }
+
+    int retval = 1;
+    FILE *pcap;
+
+    set_program_name(argv[0]);
+
+    pcap = fopen(argv[1], "rb");
+    if (!pcap) {
+        ovs_fatal(errno, "failed to open %s", argv[1]);
+    }
+
+    retval = ovs_pcap_read_header(pcap);
+    if (retval) {
+        ovs_fatal(retval > 0 ? retval : 0, "reading pcap header failed");
+    }
+
+    /* verify if the offer-ip is in proper format */
+    ovs_be32 expected_offer_ip;
+    if (!ovs_scan(argv[2], IP_SCAN_FMT, IP_SCAN_ARGS(&expected_offer_ip))) {
+        ovs_fatal(1, "invalid expected offer ip");
+    }
+
+    /* verify if the server-ip is in proper format */
+    ovs_be32 server_ip;
+    if (!ovs_scan(argv[3], IP_SCAN_FMT, IP_SCAN_ARGS(&server_ip))) {
+        ovs_fatal(1, "invalid expected server ip");
+    }
+
+    struct eth_addr server_mac;
+    if (!eth_addr_from_string(argv[4], &server_mac)) {
+        ovs_fatal(1, "invalid expected server mac");
+    }
+
+    struct dp_packet *packet = NULL;
+    retval = ovs_pcap_read(pcap, &packet, NULL);
+    if (retval == EOF) {
+        ovs_fatal(0, "unexpected end of file reading pcap file : [%s]\n",
+                  argv[1]);
+    } else if (retval) {
+        ovs_fatal(retval, "error reading pcap file");
+    }
+
+    int exit_code = 1;
+    struct flow flow;
+    flow_extract(packet, &flow);
+
+    struct dhcp_header const *dhcp_data = dp_packet_get_udp_payload(packet);
+    if (dhcp_data->op != (uint8_t)2) {
+        printf("Invalid dhcp op reply code : %d\n", dhcp_data->op);
+        goto exit;
+    }
+
+    if (flow.tp_src != htons(DHCP_SERVER_PORT) &&
+        flow.tp_dst != htons(DHCP_CLIENT_PORT)) {
+        printf("Error. Not a dhcp response packet \n");
+        goto exit;
+    }
+
+    if (flow.nw_dst != expected_offer_ip) {
+        printf("Error. Offered ip : "IP_FMT " : Expected ip : %s\n",
+        IP_ARGS(flow.nw_dst), argv[2]);
+        goto exit;
+    }
+
+    if(dhcp_data->yiaddr != expected_offer_ip) {
+        printf("Error. Offered yiaddr : "IP_FMT " : Expected ip : %s\n",
+        IP_ARGS(dhcp_data->yiaddr), argv[2]);
+        goto exit;
+    }
+
+    /* Verify the dhcp option cookie */
+    uint8_t const *footer = (uint8_t *)dhcp_data + sizeof(*dhcp_data);
+    ovs_be32 dhcp_cookie = htonl(DHCP_MAGIC_COOKIE);
+    if (memcmp(footer, &dhcp_cookie, sizeof(ovs_be32))) {
+        printf("Error. Invalid dhcp magic cookie\n");
+        goto exit;
+    }
+
+    /* Validate userdata. It should be ASCII hex */
+    uint64_t dhcp_opts_stub[1024 / 8];
+    struct ofpbuf dhcp_opts = OFPBUF_STUB_INITIALIZER(dhcp_opts_stub);
+    if (atoi(argv[5]) == 1) {
+        /* DHCP reply type should be OFFER (02) */
+        ofpbuf_put_hex(&dhcp_opts, "350102", NULL);
+    } else {
+        /* DHCP reply type should be ACK (05) */
+        ofpbuf_put_hex(&dhcp_opts, "350105", NULL);
+    }
+
+    if (ofpbuf_put_hex(&dhcp_opts, argv[6], NULL)[0] != '\0') {
+        printf("Error. Invalid userdata\n");
+        goto exit;
+    }
+
+    /* 4 bytes padding, 1 byte FF and 4 bytes padding */
+    ofpbuf_put_hex(&dhcp_opts, "00000000FF00000000", NULL);
+
+    footer += sizeof(uint32_t);
+
+    size_t dhcp_opts_size = (const char *)dp_packet_tail(packet) - (
+        const char *)footer;
+    if (dhcp_opts_size != dhcp_opts.size) {
+        printf("Error. dhcp options size mismatch\n");
+        goto exit;
+    }
+
+    if (memcmp(footer, dhcp_opts.data, dhcp_opts.size)) {
+        printf("Error. Invalid dhcp options present\n");
+        goto exit;
+    }
+
+    exit_code = 0;
+
+exit:
+    fclose(pcap);
+    if (packet) {
+        dp_packet_delete(packet);
+    }
+    exit(exit_code);
+}
+
 OVSTEST_REGISTER("test-ovn-put-dhcp-opts-action", test_put_dhcp_opts_action);
+OVSTEST_REGISTER("test-ovn-dhcp", test_ovn_dhcp_main);
