diff --git a/ovn/northd/ovn-northd.c b/ovn/northd/ovn-northd.c
index f20f3b1..ca7e02e 100644
--- a/ovn/northd/ovn-northd.c
+++ b/ovn/northd/ovn-northd.c
@@ -1004,33 +1004,179 @@ extract_lport_addresses(char *address)
     return laddrs;
 }
 
-/* Appends port security constraints on L2 address field 'eth_addr_field'
- * (e.g. "eth.src" or "eth.dst") to 'match'.  'port_security', with
- * 'n_port_security' elements, is the collection of port_security constraints
- * from an OVN_NB Logical_Port row. */
 static void
-build_port_security(const char *eth_addr_field,
-                    char **port_security, size_t n_port_security,
-                    struct ds *match)
+build_port_security_arp_flow(
+    struct ds *match, char *port_name, struct eth_addr ea,
+    struct ipv4_netaddr *ipv4_addrs, int n_ipv4_addrs)
 {
-    size_t base_len = match->length;
-    ds_put_format(match, " && %s == {", eth_addr_field);
+    ds_put_format(match, "inport == %s && eth.src == "ETH_ADDR_FMT" && arp"
+                  " && arp.sha == "ETH_ADDR_FMT" && (", port_name,
+                  ETH_ADDR_ARGS(ea), ETH_ADDR_ARGS(ea));
+    for(int i = 0; i < n_ipv4_addrs; i++) {
+        if (i) {
+            ds_put_cstr(match, " || ");
+        }
+        ds_put_format(match, "arp.spa == "IP_FMT, IP_ARGS(ipv4_addrs[i].addr));
+    }
+    ds_put_cstr(match, ")");
+}
 
-    size_t n = 0;
-    for (size_t i = 0; i < n_port_security; i++) {
-        struct eth_addr ea;
+static void
+build_port_security_ipv4_flow(enum ovn_pipeline pipeline, struct ds *match,
+                              struct ipv4_netaddr *ipv4_addrs,
+                              int n_ipv4_addrs)
+{
+    char *ipv4_addr_field;
+    if (pipeline == P_IN) {
+        ipv4_addr_field = "ip4.src";
+        /* For ingress pipeline allow broadcast traffic (for dhcp) */
+        ds_put_cstr(match, " && ip4 && ((ip4.src == 0.0.0.0 &&"
+                    " ip4.dst == 255.255.255.255) || ");
+    }
+    else {
+        ipv4_addr_field = "ip4.dst";
+        ds_put_cstr(match, " && ip4 && (");
+    }
 
-        if (eth_addr_from_string(port_security[i], &ea)) {
-            ds_put_format(match, ETH_ADDR_FMT, ETH_ADDR_ARGS(ea));
-            ds_put_char(match, ' ');
-            n++;
+    for(int i = 0; i < n_ipv4_addrs; i++) {
+        if (i) {
+            ds_put_cstr(match, " || ");
         }
+        ds_put_format(match, "%s == "IP_FMT, ipv4_addr_field,
+                      IP_ARGS(ipv4_addrs[i].addr));
+    }
+    ds_put_cstr(match, ")");
+}
+
+/*
+ * Build port security constraints on L2 and L3 address fields and add
+ * logical flows to S_SWITCH_(IN/OUT)_PORT_SEC stage.
+ *
+ * If there is no port security enabled for the logical port add a flow
+ * to allow all the traffic.
+ * For each port security of the logical port
+ *    - For ingress pipine, add a priority 90 flow to allow arp packets for
+ *      known ipv4 addresses.
+ *    - Add a priority 90 flow to allow ipv4 packets for known ipv4 addresses
+ *    - Add a priority 80 flow to drop arp (for ingress) and ip packets
+ *    - Add a priority 90 flow to allow all ipv6 packets if port security
+ *      has ipv6 address(es).
+ *    - Add a priority 80 flow to drop ipv6 packets.
+ *    - Add a priority 50 flow to allow all other traffic with the matching
+ *      ethernet address.
+ */
+static void
+build_port_security(enum ovn_pipeline pipeline, struct ovn_port *op,
+                    struct hmap *lflows)
+{
+    char *eth_addr_field;
+    char *port_direction;
+    enum ovn_stage stage;
+    char *action;
+    if (pipeline == P_IN) {
+        eth_addr_field = "eth.src";
+        port_direction = "inport";
+        stage = S_SWITCH_IN_PORT_SEC;
+        action = "next;";
+    }
+    else {
+        eth_addr_field = "eth.dst";
+        port_direction = "outport";
+        stage = S_SWITCH_OUT_PORT_SEC;
+        action = "output;";
+    }
+
+    if (!op->nbs->n_port_security) {
+        /* port security is disabled on this lport. */
+        char *match = xasprintf("%s == %s", port_direction, op->json_key);
+        ovn_lflow_add(lflows, op->od, stage, 50, match, action);
+        free(match);
+        return;
     }
-    ds_chomp(match, ' ');
-    ds_put_cstr(match, "}");
 
-    if (!n) {
-        match->length = base_len;
+    struct ds match = DS_EMPTY_INITIALIZER;
+    for (size_t i = 0; i < op->nbs->n_port_security; i++) {
+        struct lport_addresses *ps = extract_lport_addresses(
+                op->nbs->port_security[i]);
+        if (!ps) {
+            continue;
+        }
+
+        /* Allow all traffic with priority 50 */
+        ds_init(&match);
+        ds_put_format(&match, "%s == %s && %s == "ETH_ADDR_FMT,
+                      port_direction, op->json_key, eth_addr_field,
+                      ETH_ADDR_ARGS(ps->ea));
+        ovn_lflow_add(lflows, op->od, stage, 50, ds_cstr(&match), action);
+        ds_destroy(&match);
+
+        if (!ps->n_ipv4_addrs && !ps->n_ipv6_addrs) {
+            /* port security option has only l2 address.
+             * Add port security constraints only on eth address which the above
+             * priority 50 flow takes care of*/
+            free(ps);
+            continue;
+        }
+
+        if (ps->n_ipv4_addrs) {
+            if (pipeline == P_IN) {
+                ds_init(&match);
+                /* Allow arp traffic for known ipv4 addresses */
+                build_port_security_arp_flow(&match, op->json_key, ps->ea,
+                                             ps->ipv4_addrs, ps->n_ipv4_addrs);
+                ovn_lflow_add(lflows, op->od, S_SWITCH_IN_PORT_SEC, 90,
+                              ds_cstr(&match), "next;");
+                ds_destroy(&match);
+            }
+
+            /* Allow traffic for known ipv4 addresses */
+            ds_init(&match);
+            ds_put_format(&match, "%s == %s && %s == "ETH_ADDR_FMT,
+                          port_direction, op->json_key, eth_addr_field,
+                          ETH_ADDR_ARGS(ps->ea));
+            build_port_security_ipv4_flow(pipeline, &match, ps->ipv4_addrs,
+                                          ps->n_ipv4_addrs);
+            ovn_lflow_add(lflows, op->od, stage, 90, ds_cstr(&match),
+                          action);
+            ds_destroy(&match);
+            free(ps->ipv4_addrs);
+        }
+
+        /* Drop all ip and arp packets (for ingress pipline) with
+         * priority 80. */
+        ds_init(&match);
+        ds_put_format(&match, "%s == %s && %s == "ETH_ADDR_FMT,
+                      port_direction, op->json_key, eth_addr_field,
+                      ETH_ADDR_ARGS(ps->ea));
+        if (pipeline == P_IN) {
+            ds_put_cstr(&match, " && (arp || ip4)");
+        }
+        else {
+            ds_put_cstr(&match, " && ip4");
+        }
+        ovn_lflow_add(lflows, op->od, stage, 80, ds_cstr(&match), "drop;");
+        ds_destroy(&match);
+
+        if (ps->n_ipv6_addrs) {
+            /* XXX Need to add port security flows for ipv6.
+             * For now add a priority 90 flow to allow all ipv6 traffic */
+            ds_init(&match);
+            ds_put_format(&match, "%s == %s && %s == "ETH_ADDR_FMT" && ip6",
+                          port_direction, op->json_key, eth_addr_field,
+                          ETH_ADDR_ARGS(ps->ea));
+            ovn_lflow_add(lflows, op->od, stage, 90, ds_cstr(&match), action);
+            ds_destroy(&match);
+            free(ps->ipv6_addrs);
+        }
+
+        /* Drop all ipv6 traffic with priority 80. */
+        ds_init(&match);
+        ds_put_format(&match, "%s == %s && %s == "ETH_ADDR_FMT" && ip6",
+                      port_direction, op->json_key, eth_addr_field,
+                      ETH_ADDR_ARGS(ps->ea));
+        ovn_lflow_add(lflows, op->od, stage, 80, ds_cstr(&match), "drop;");
+        ds_destroy(&match);
+        free(ps);
     }
 }
 
@@ -1257,14 +1403,7 @@ build_lswitch_flows(struct hmap *datapaths, struct hmap *ports,
             continue;
         }
 
-        struct ds match = DS_EMPTY_INITIALIZER;
-        ds_put_format(&match, "inport == %s", op->json_key);
-        build_port_security("eth.src",
-                            op->nbs->port_security, op->nbs->n_port_security,
-                            &match);
-        ovn_lflow_add(lflows, op->od, S_SWITCH_IN_PORT_SEC, 50,
-                      ds_cstr(&match), "next;");
-        ds_destroy(&match);
+        build_port_security(P_IN, op, lflows);
     }
 
     /* Ingress table 3: Destination lookup, ARP reply for known IPs.
@@ -1414,19 +1553,16 @@ build_lswitch_flows(struct hmap *datapaths, struct hmap *ports,
             continue;
         }
 
-        struct ds match = DS_EMPTY_INITIALIZER;
-        ds_put_format(&match, "outport == %s", op->json_key);
         if (lport_is_enabled(op->nbs)) {
-            build_port_security("eth.dst", op->nbs->port_security,
-                                op->nbs->n_port_security, &match);
-            ovn_lflow_add(lflows, op->od, S_SWITCH_OUT_PORT_SEC, 50,
-                          ds_cstr(&match), "output;");
+            build_port_security(P_OUT, op, lflows);
         } else {
+            struct ds match = DS_EMPTY_INITIALIZER;
+            ds_put_format(&match, "outport == %s", op->json_key);
+
             ovn_lflow_add(lflows, op->od, S_SWITCH_OUT_PORT_SEC, 150,
                           ds_cstr(&match), "drop;");
+            ds_destroy(&match);
         }
-
-        ds_destroy(&match);
     }
 }
 
diff --git a/tests/ovn.at b/tests/ovn.at
index b990116..72b6643 100644
--- a/tests/ovn.at
+++ b/tests/ovn.at
@@ -1314,3 +1314,258 @@ for i in 1 2 3; do
     done
 done
 AT_CLEANUP
+
+# 3 hypervisors, one logical switch, 3 logical ports per hypervisor
+AT_SETUP([ovn -- 3 HVs, 1 LS, 3 lports/HV])
+AT_KEYWORDS([portsecurity])
+AT_SKIP_IF([test $HAVE_PYTHON = no])
+ovn_start
+
+# Create hypervisors hv[123].
+# Add vif1[123] to hv1, vif2[123] to hv2, vif3[123] to hv3.
+# Add all of the vifs to a single logical switch lsw0.
+# Turn off port security on vifs vif[123]1
+# Turn on l2 port security on vifs vif[123]2
+# Turn of l2 and l3 port security on vifs vif[123]3
+# Make vif13, vif2[23], vif3[123] destinations for unknown MACs.
+ovn-nbctl lswitch-add lsw0
+net_add n1
+for i in 1 2 3; do
+    sim_add hv$i
+    as hv$i
+    ovs-vsctl add-br br-phys
+    ovn_attach n1 br-phys 192.168.0.$i
+
+    for j in 1 2 3; do
+        ovs-vsctl add-port br-int vif$i$j -- set Interface vif$i$j external-ids:iface-id=lp$i$j options:tx_pcap=hv$i/vif$i$j-tx.pcap options:rxq_pcap=hv$i/vif$i$j-rx.pcap ofport-request=$i$j
+        ovn-nbctl lport-add lsw0 lp$i$j
+        if test $j = 1; then
+            ovn-nbctl lport-set-addresses lp$i$j "f0:00:00:00:00:$i$j 192.168.0.$i$j" unknown
+        elif test $j = 2; then
+            ovn-nbctl lport-set-addresses lp$i$j "f0:00:00:00:00:$i$j 192.168.0.$i$j"
+            ovn-nbctl lport-set-port-security lp$i$j f0:00:00:00:00:$i$j
+        else
+            ovn-nbctl lport-set-addresses lp$i$j "f0:00:00:00:00:$i$j 192.168.0.$i$j"
+            ovn-nbctl lport-set-port-security lp$i$j "f0:00:00:00:00:$i$j 192.168.0.$i$j"
+        fi
+    done
+done
+
+
+# Pre-populate the hypervisors' ARP tables so that we don't lose any
+# packets for ARP resolution (native tunneling doesn't queue packets
+# for ARP resolution).
+ovn_populate_arp
+
+# Allow some time for ovn-northd and ovn-controller to catch up.
+# XXX This should be more systematic.
+sleep 1
+ovn-sbctl dump-flows -- list multicast_group
+
+# Given the name of a logical port, prints the name of the hypervisor
+# on which it is located.
+vif_to_hv() {
+    echo hv${1%?}
+}
+
+
+trim_zeros() {
+    sed 's/\(00\)\{1,\}$//'
+}
+for i in 1 2 3; do
+    for j in 1 2 3; do
+        : > $i$j.expected
+    done
+done
+
+# test_ip INPORT SRC_MAC DST_MAC SRC_IP DST_IP OUTPORT...
+#
+# This shell function causes an ip packet to be received on INPORT.
+# The packet's content has Ethernet destination DST and source SRC
+# (each exactly 12 hex digits) and Ethernet type ETHTYPE (4 hex digits).
+# The OUTPORTs (zero or more) list the VIFs on which the packet should
+# be received.  INPORT and the OUTPORTs are specified as lport numbers,
+# e.g. 11 for vif11.
+test_ip() {
+    # This packet has bad checksums but logical L3 routing doesn't check.
+    local inport=$1 src_mac=$2 dst_mac=$3 src_ip=$4 dst_ip=$5
+    local packet=${dst_mac}${src_mac}08004500001c0000000040110000${src_ip}${dst_ip}003511110008
+    shift; shift; shift; shift; shift
+    hv=`vif_to_hv $inport`
+    as $hv ovs-appctl netdev-dummy/receive vif$inport $packet
+    #as $hv ovs-appctl ofproto/trace br-int in_port=$inport $packet
+    for outport; do
+        echo $packet | trim_zeros >> $outport.expected
+    done
+}
+
+# test_arp INPORT SHA SPA TPA DROP [REPLY_HA]
+#
+# Causes a packet to be received on INPORT.  The packet is an ARP
+# request with SHA, SPA, and TPA as specified.  If REPLY_HA is provided, then
+# it should be the hardware address of the target to expect to receive in an
+# ARP reply; otherwise no reply is expected.
+#
+# INPORT is an lport number, e.g. 11 for vif11.
+# SHA and REPLY_HA are each 12 hex digits.
+# SPA and TPA are each 8 hex digits.
+test_arp() {
+    local inport=$1 sha=$2 spa=$3 tpa=$4 drop=$5 reply_ha=$6
+    local request=ffffffffffff${sha}08060001080006040001${sha}${spa}ffffffffffff${tpa}
+    hv=`vif_to_hv $inport`
+    as $hv ovs-appctl netdev-dummy/receive vif$inport $request
+    #as $hv ovs-appctl ofproto/trace br-int in_port=$inport $request
+    if test $drop != 1; then
+        if test X$reply_ha == X; then
+            # Expect to receive the broadcast ARP on the other logical switch ports
+            # if no reply is expected.
+            local i j
+            for i in 1 2 3; do
+                for j in 1 2 3; do
+                    if test $i$j != $inport; then
+                        echo $request >> $i$j.expected
+                    fi
+                done
+            done
+        else
+            # Expect to receive the reply, if any.
+            local reply=${sha}${reply_ha}08060001080006040002${reply_ha}${tpa}${sha}${spa}
+            echo $reply >> $inport.expected
+        fi
+    fi
+}
+
+# test_ipv6 INPORT SRC_MAC DST_MAC SRC_IP DST_IP OUTPORT...
+# This function is similar to test_ip() except that it sends
+# ipv6 packet
+test_ipv6() {
+    local inport=$1 src_mac=$2 dst_mac=$3 src_ip=$4 dst_ip=$5
+    local packet=${dst_mac}${src_mac}86dd6000000000083aff${src_ip}${dst_ip}0000000000000000
+    shift; shift; shift; shift; shift
+    hv=`vif_to_hv $inport`
+    as $hv ovs-appctl netdev-dummy/receive vif$inport $packet
+    #as $hv ovs-appctl ofproto/trace br-int in_port=$inport $packet
+    for outport; do
+        echo $packet | trim_zeros >> $outport.expected
+    done
+}
+
+ip_to_hex() {
+    printf "%02x%02x%02x%02x" "$@"
+}
+
+# no port security
+sip=`ip_to_hex 192 168 0 12`
+tip=`ip_to_hex 192 168 0 13`
+# the arp packet should be allowed even if lp[123]1 is
+# not configured with mac f00000000023 and ip 192.168.0.12
+for i in 1 2 3; do
+    test_arp ${i}1 f00000000023 $sip $tip 0 f00000000013
+    for j in 1 2 3; do
+        if test $i != $j; then
+            test_ip ${i}1 f000000000${i}1 f000000000${j}1 $sip $tip ${j}1
+            echo 'hi'
+        fi
+    done
+done
+
+# l2 port security
+sip=`ip_to_hex 192 168 0 12`
+tip=`ip_to_hex 192 168 0 13`
+
+# arp packet should be allowed since lp22 is configured with
+# mac f00000000022
+test_arp 22 f00000000022 $sip $tip 0 f00000000013
+
+# arp packet should not be allowed since lp32 is not configured with
+# mac f00000000021
+test_arp 32 f00000000021 $sip $tip 1
+
+# ip packets should be allowed and received since lp[123]2 do not
+# have l3 port security
+sip=`ip_to_hex 192 168 0 55`
+tip=`ip_to_hex 192 168 0 66`
+for i in 1 2 3; do
+    for j in 1 2 3; do
+        if test $i != $j; then
+            # test_ip $i2 f000000000$i2 f000000000$j2 $sip $tip $j2
+            echo 'bye'
+        fi
+    done
+done
+
+# ipv6 packets should be received by lp[123]2
+# lp[123]1 can send ipv6 traffic as there is no port security
+sip=fe800000000000000000000000000000
+tip=ff020000000000000000000000000000
+
+for i in 1 2 3; do
+    test_ipv6 ${i}1 f000000000${i}2 f000000000{i}2 $sip $tip {i}2
+done
+
+
+# l2 and l3 port security
+sip=`ip_to_hex 192 168 0 13`
+tip=`ip_to_hex 192 168 0 22`
+# arp packet should be allowed since lp13 is configured with
+# f00000000013 and 192.168.0.13
+test_arp 13 f00000000013 $sip $tip 0 f00000000022
+
+# the arp packet should be dropped because lp23 is not configured
+# with mac f00000000022
+sip=`ip_to_hex 192 168 0 13`
+tip=`ip_to_hex 192 168 0 22`
+test_arp 23 f00000000022 $sip $tip 1
+
+
+# the arp packet should be dropped because lp33 is not configured
+# with ip 192.168.0.55
+spa=`ip_to_hex 192 168 0 55`
+tpa=`ip_to_hex 192 168 0 22`
+test_arp 33 f00000000031 $spa $tpa 1
+
+
+# ip packets should not be received by lp[123]3 since
+# l3 port security is enabled
+sip=`ip_to_hex 192 168 0 55`
+tip=`ip_to_hex 192 168 0 66`
+for i in 1 2 3; do
+    for j in 1 2 3; do
+        test_ip ${i}2 f000000000${i}2 f000000000${j}3 $sip $tip
+        echo 'see'
+    done
+done
+
+# ipv6 packets should be dropped for lp[123]3 since
+# it is configured with only ipv4 address
+sip=fe800000000000000000000000000000
+tip=ff020000000000000000000000000000
+
+for i in 1 2 3; do
+    test_ipv6 ${i}3 f000000000${i}3 f00000000022 $sip $tip
+done
+
+# ipv6 packets should not be received by lp[123]3
+# lp[123]1 can send ipv6 traffic as there is no port security
+for i in 1 2 3; do
+    test_ipv6 ${i}1 f000000000${i}1 f000000000${i}3 $sip $tip
+done
+
+# Allow some time for packet forwarding.
+# XXX This can be improved.
+sleep 1
+
+# Now check the packets actually received against the ones expected.
+for i in 1 2 3; do
+    for j in 1 2 3; do
+        file=hv$i/vif$i$j-tx.pcap
+        echo $file
+        $PYTHON "$top_srcdir/utilities/ovs-pcap.in" $file | trim_zeros > $i$j.packets
+        sort $i$j.expected > expout
+        AT_CHECK([sort $i$j.packets], [0], [expout])
+        echo
+    done
+done
+
+
+AT_CLEANUP
