diff --git a/lib/dhcp.h b/lib/dhcp.h
index 6f97298..cafe116 100644
--- a/lib/dhcp.h
+++ b/lib/dhcp.h
@@ -25,6 +25,8 @@
 #define DHCP_SERVER_PORT        67       /* Port used by DHCP server. */
 #define DHCP_CLIENT_PORT        68       /* Port used by DHCP client. */
 
+#define DHCP_MAGIC_COOKIE (uint32_t)0x63825363
+
 #define DHCP_HEADER_LEN 236
 struct dhcp_header {
     uint8_t op;                 /* DHCP_BOOTREQUEST or DHCP_BOOTREPLY. */
@@ -45,4 +47,15 @@ struct dhcp_header {
 };
 BUILD_ASSERT_DECL(DHCP_HEADER_LEN == sizeof(struct dhcp_header));
 
+#define DHCP_OP_REQUEST    ((uint8_t)1)
+#define DHCP_OP_REPLY      ((uint8_t)2)
+
+#define DHCP_MSG_DISCOVER  ((uint8_t)1)
+#define DHCP_MSG_OFFER     ((uint8_t)2)
+#define DHCP_MSG_REQUEST   ((uint8_t)3)
+#define DHCP_MSG_ACK       ((uint8_t)5)
+
+#define DHCP_OPT_MSG_TYPE  ((uint8_t)53)
+#define DHCP_OPT_END       ((uint8_t)255)
+
 #endif /* dhcp.h */
diff --git a/ovn/controller/lflow.c b/ovn/controller/lflow.c
index 96b7c66..0299d49 100644
--- a/ovn/controller/lflow.c
+++ b/ovn/controller/lflow.c
@@ -24,6 +24,7 @@
 #include "ovn-controller.h"
 #include "ovn/lib/actions.h"
 #include "ovn/lib/expr.h"
+#include "ovn/lib/ovn-dhcp.h"
 #include "ovn/lib/ovn-sb-idl.h"
 #include "packets.h"
 #include "simap.h"
@@ -203,6 +204,13 @@ add_logical_flows(struct controller_ctx *ctx, const struct lport_index *lports,
 {
     uint32_t conj_id_ofs = 1;
 
+    struct hmap dhcp_opts = HMAP_INITIALIZER(&dhcp_opts);
+    const struct sbrec_dhcp_options *dhcp_opt_row;
+    SBREC_DHCP_OPTIONS_FOR_EACH(dhcp_opt_row, ctx->ovnsb_idl) {
+        dhcp_opt_add(&dhcp_opts, dhcp_opt_row->name, dhcp_opt_row->code,
+                     dhcp_opt_row->type);
+    }
+
     const struct sbrec_logical_flow *lflow;
     SBREC_LOGICAL_FLOW_FOR_EACH (lflow, ctx->ovnsb_idl) {
         /* Determine translation of logical table IDs to physical table IDs. */
@@ -277,6 +285,7 @@ add_logical_flows(struct controller_ctx *ctx, const struct lport_index *lports,
         };
         struct action_params ap = {
             .symtab = &symtab,
+            .dhcp_opts = &dhcp_opts,
             .lookup_port = lookup_port_cb,
             .aux = &aux,
             .ct_zones = ct_zones,
@@ -360,6 +369,8 @@ add_logical_flows(struct controller_ctx *ctx, const struct lport_index *lports,
         ofpbuf_uninit(&ofpacts);
         conj_id_ofs += n_conjs;
     }
+
+    dhcp_opts_destroy(&dhcp_opts);
 }
 
 static void
diff --git a/ovn/controller/pinctrl.c b/ovn/controller/pinctrl.c
index 289a995..489ca21 100644
--- a/ovn/controller/pinctrl.c
+++ b/ovn/controller/pinctrl.c
@@ -17,7 +17,9 @@
 
 #include "pinctrl.h"
 
+
 #include "coverage.h"
+#include "csum.h"
 #include "dirs.h"
 #include "dp-packet.h"
 #include "flow.h"
@@ -27,6 +29,8 @@
 #include "openvswitch/ofp-print.h"
 #include "openvswitch/ofp-util.h"
 #include "openvswitch/vlog.h"
+
+#include "lib/dhcp.h"
 #include "ovn-controller.h"
 #include "ovn/lib/actions.h"
 #include "ovn/lib/logical-fields.h"
@@ -192,13 +196,106 @@ exit:
 }
 
 static void
+pinctl_handle_dhcp_offer(struct dp_packet *pkt, struct ofputil_packet_in *pin,
+                         struct ofpbuf *userdata, struct ofpbuf *continuation)
+{
+    enum ofp_version version = rconn_get_version(swconn);
+    enum ofputil_protocol proto = ofputil_protocol_from_ofp_version(version);
+
+    ovs_be32 *offer_ip = ofpbuf_pull(userdata, sizeof *offer_ip);
+    const uint8_t *payload = dp_packet_get_udp_payload(pkt);
+    payload = (payload + sizeof (struct dhcp_header) + sizeof(uint32_t));
+
+    if (payload[0] != DHCP_OPT_MSG_TYPE && (payload[2] != DHCP_MSG_DISCOVER ||
+                                            payload[2] != DHCP_MSG_REQUEST)) {
+        /* If its not a valid dhcp packet resume the packet without any
+         * changes */
+        goto exit;
+    }
+
+    uint8_t msg_type;
+    if (payload[2] == DHCP_MSG_DISCOVER) {
+        msg_type = DHCP_MSG_OFFER;
+    } else {
+        msg_type = DHCP_MSG_ACK;
+    }
+
+    /* Total dhcp options length will be options stored in the userdata +
+     * 16 bytes.
+     *
+     * --------------------------------------------------------------
+     *| 4 Bytes (dhcp cookie) | 3 Bytes (option type) | dhcp options |
+     * --------------------------------------------------------------
+     *| 4 Bytes padding | 1 Byte (option end 0xFF ) | 4 Bytes padding|
+     * --------------------------------------------------------------
+     */
+    uint16_t new_udp_len = UDP_HEADER_LEN + DHCP_HEADER_LEN + \
+                           userdata->size + 16;
+    size_t new_packet_len = ETH_HEADER_LEN + IP_HEADER_LEN + new_udp_len;
+
+    struct dp_packet packet;
+    dp_packet_init(&packet, new_packet_len);
+    dp_packet_clear(&packet);
+    dp_packet_prealloc_tailroom(&packet, new_packet_len);
+
+    dp_packet_put(&packet, dp_packet_pull(pkt, ETH_HEADER_LEN),
+                  ETH_HEADER_LEN);
+    struct ip_header *ip = dp_packet_put(
+        &packet, dp_packet_pull(pkt, IP_HEADER_LEN), IP_HEADER_LEN);
+
+    struct udp_header *udp = dp_packet_put(
+        &packet, dp_packet_pull(pkt, UDP_HEADER_LEN), UDP_HEADER_LEN);
+
+    struct dhcp_header *dhcp_data = dp_packet_put(
+        &packet, dp_packet_pull(pkt, DHCP_HEADER_LEN), DHCP_HEADER_LEN);
+    dhcp_data->op = DHCP_OP_REPLY;
+    dhcp_data->yiaddr = *offer_ip;
+
+    ovs_be32 magic_cookie = htonl(DHCP_MAGIC_COOKIE);
+    dp_packet_put(&packet, &magic_cookie, sizeof(ovs_be32));
+
+    uint8_t *dhcp_options = dp_packet_put_zeros(&packet, userdata->size + 12);
+
+    /* Dhcp option - type */
+    dhcp_options[0] = (uint8_t) DHCP_OPT_MSG_TYPE;
+    dhcp_options[1] = (uint8_t) 1;
+    dhcp_options[2] = msg_type;
+    dhcp_options += 3;
+
+    memcpy(dhcp_options, userdata->data, userdata->size);
+    dhcp_options += userdata->size;
+
+    /* Padding */
+    dhcp_options += 4;
+
+    /* End */
+    dhcp_options[0] = DHCP_OPT_END;
+
+    udp->udp_len = htons(new_udp_len);
+    ip->ip_tos = 0;
+    ip->ip_tot_len = htons(IP_HEADER_LEN + new_udp_len);
+    udp->udp_csum = 0;
+    ip->ip_csum = 0;
+    ip->ip_csum = csum(ip, sizeof *ip);
+
+    pin->packet = dp_packet_data(&packet);
+    pin->packet_len = dp_packet_size(&packet);
+
+exit:
+    queue_msg(ofputil_encode_resume(pin, continuation, proto));
+    dp_packet_uninit(&packet);
+}
+
+static void
 process_packet_in(const struct ofp_header *msg)
 {
     static struct vlog_rate_limit rl = VLOG_RATE_LIMIT_INIT(1, 5);
 
     struct ofputil_packet_in pin;
+    struct ofpbuf continuation;
     enum ofperr error = ofputil_decode_packet_in(msg, true, &pin,
-                                                 NULL, NULL, NULL);
+                                                 NULL, NULL, &continuation);
+
     if (error) {
         VLOG_WARN_RL(&rl, "error decoding packet-in: %s",
                      ofperr_to_string(error));
@@ -230,6 +327,9 @@ process_packet_in(const struct ofp_header *msg)
         pinctrl_handle_put_arp(&pin.flow_metadata.flow, &headers);
         break;
 
+    case ACTION_OPCODE_DHCP_OFFER:
+        pinctl_handle_dhcp_offer(&packet, &pin, &userdata, &continuation);
+        break;
     default:
         VLOG_WARN_RL(&rl, "unrecognized packet-in opcode %"PRIu32,
                      ntohl(ah->opcode));
@@ -240,6 +340,7 @@ process_packet_in(const struct ofp_header *msg)
 static void
 pinctrl_recv(const struct ofp_header *oh, enum ofptype type)
 {
+
     if (type == OFPTYPE_ECHO_REQUEST) {
         queue_msg(make_echo_reply(oh));
     } else if (type == OFPTYPE_GET_CONFIG_REPLY) {
diff --git a/ovn/lib/actions.c b/ovn/lib/actions.c
index 5f0bf19..6081cae 100644
--- a/ovn/lib/actions.c
+++ b/ovn/lib/actions.c
@@ -20,14 +20,18 @@
 #include "actions.h"
 #include "byte-order.h"
 #include "compiler.h"
+#include "ovn-dhcp.h"
 #include "expr.h"
 #include "lex.h"
 #include "logical-fields.h"
 #include "openvswitch/dynamic-string.h"
 #include "openvswitch/ofp-actions.h"
 #include "openvswitch/ofpbuf.h"
+#include "packets.h"
+#include "shash.h"
 #include "simap.h"
 
+
 /* Context maintained during actions_parse(). */
 struct action_context {
     const struct action_params *ap; /* Parameters. */
@@ -186,13 +190,15 @@ add_prerequisite(struct action_context *ctx, const char *prerequisite)
 }
 
 static size_t
-start_controller_op(struct ofpbuf *ofpacts, enum action_opcode opcode)
+start_controller_op(struct ofpbuf *ofpacts, enum action_opcode opcode,
+                    bool pause)
 {
     size_t ofs = ofpacts->size;
 
     struct ofpact_controller *oc = ofpact_put_CONTROLLER(ofpacts);
     oc->max_len = UINT16_MAX;
     oc->reason = OFPR_ACTION;
+    oc->pause = pause;
 
     struct action_header ah = { .opcode = htonl(opcode) };
     ofpbuf_put(ofpacts, &ah, sizeof ah);
@@ -212,7 +218,7 @@ finish_controller_op(struct ofpbuf *ofpacts, size_t ofs)
 static void
 put_controller_op(struct ofpbuf *ofpacts, enum action_opcode opcode)
 {
-    size_t ofs = start_controller_op(ofpacts, opcode);
+    size_t ofs = start_controller_op(ofpacts, opcode, false);
     finish_controller_op(ofpacts, ofs);
 }
 
@@ -246,7 +252,9 @@ parse_arp_action(struct action_context *ctx)
      * converted to OpenFlow, as its userdata.  ovn-controller will convert the
      * packet to an ARP and then send the packet and actions back to the switch
      * inside an OFPT_PACKET_OUT message. */
-    size_t oc_offset = start_controller_op(ctx->ofpacts, ACTION_OPCODE_ARP);
+    /* controller. */
+    size_t oc_offset = start_controller_op(ctx->ofpacts, ACTION_OPCODE_ARP,
+                                           false);
     ofpacts_put_openflow_actions(inner_ofpacts.data, inner_ofpacts.size,
                                  ctx->ofpacts, OFP13_VERSION);
     finish_controller_op(ctx->ofpacts, oc_offset);
@@ -261,6 +269,141 @@ parse_arp_action(struct action_context *ctx)
 }
 
 static bool
+parse_dhcp_option(struct action_context *ctx, struct ofpbuf *dhcp_opts)
+{
+    if (ctx->lexer->token.type != LEX_T_ID) {
+        action_syntax_error(ctx, NULL);
+        return false;
+    }
+
+    enum lex_type lookahead = lexer_lookahead(ctx->lexer);
+    if (lookahead != LEX_T_EQUALS) {
+        action_syntax_error(ctx, NULL);
+        return false;
+    }
+
+    const struct dhcp_opts_map *dhcp_opt = dhcp_opts_find(
+        ctx->ap->dhcp_opts, ctx->lexer->token.s);
+
+    if (!dhcp_opt) {
+        action_syntax_error(ctx, "expecting valid dhcp option.");
+        return false;
+    }
+
+    lexer_get(ctx->lexer);
+    lexer_get(ctx->lexer);
+
+    struct expr_constant_set cs;
+    memset(&cs, 0, sizeof(struct expr_constant_set));
+    if (!expr_parse_constant_set(ctx->lexer, NULL, &cs)) {
+        action_syntax_error(ctx, "invalid dhcp option values");
+        return false;
+    }
+
+    if (!lexer_match(ctx->lexer, LEX_T_COMMA) && (
+        ctx->lexer->token.type != LEX_T_RPAREN)) {
+        action_syntax_error(ctx, NULL);
+        return false;
+    }
+
+
+    if (dhcp_opt->code == 0) {
+        /* offer-ip */
+        ofpbuf_push(dhcp_opts, &cs.values[0].value.ipv4, sizeof(ovs_be32));
+        goto exit;
+    }
+
+    uint8_t *opt_header = ofpbuf_put_uninit(dhcp_opts, 2);
+    opt_header[0] = dhcp_opt->code;
+
+
+    switch(dhcp_opt->type) {
+    case DHCP_OPT_TYPE_BOOL:
+    case DHCP_OPT_TYPE_UINT8:
+        opt_header[1] = 1;
+        uint8_t val = cs.values[0].value.u8[127];
+        ofpbuf_put(dhcp_opts, &val, 1);
+        break;
+
+    case DHCP_OPT_TYPE_UINT16:
+        opt_header[1] = 2;
+        ofpbuf_put(dhcp_opts, &cs.values[0].value.be16[63], 2);
+        break;
+
+    case DHCP_OPT_TYPE_UINT32:
+        opt_header[1] = 4;
+        ofpbuf_put(dhcp_opts, &cs.values[0].value.be32[31], 4);
+        break;
+
+    case DHCP_OPT_TYPE_IP4:
+        opt_header[1] = 0;
+        for (size_t i = 0; i < cs.n_values; i++) {
+            ofpbuf_put(dhcp_opts, &cs.values[i].value.ipv4, sizeof(ovs_be32));
+            opt_header[1] += sizeof(ovs_be32);
+        }
+        break;
+
+    case DHCP_OPT_TYPE_STATIC_ROUTES:
+    {
+        size_t no_of_routes = cs.n_values;
+        if (no_of_routes % 2) {
+            no_of_routes -= 1;
+        }
+        opt_header[1] = 0;
+        for (size_t i = 0; i < no_of_routes; i+= 2) {
+            uint8_t plen = 32;
+            if (cs.values[i].masked) {
+                plen = (uint8_t) ip_count_cidr_bits(cs.values[i].mask.ipv4);
+            }
+            ofpbuf_put(dhcp_opts, &plen, 1);
+            ofpbuf_put(dhcp_opts, &cs.values[i].value.ipv4, plen / 8);
+            ofpbuf_put(dhcp_opts, &cs.values[i + 1].value.ipv4,
+                       sizeof(ovs_be32));
+            opt_header[1] += (1 + (plen / 8) + sizeof(ovs_be32)) ;
+        }
+        break;
+    }
+
+    case DHCP_OPT_TYPE_STR:
+        opt_header[1] = strlen(cs.values[0].string);
+        ofpbuf_put(dhcp_opts, cs.values[0].string, opt_header[1]);
+        break;
+    }
+
+exit:
+    expr_constant_set_destroy(&cs);
+    return true;
+}
+
+static void
+parse_dhcp_offer_action(struct action_context *ctx)
+{
+    if (!lexer_match(ctx->lexer, LEX_T_LPAREN)) {
+        action_syntax_error(ctx, "expecting `('");
+        return;
+    }
+
+    uint64_t dhcp_opts_stub[1024 / 8];
+    struct ofpbuf dhcp_opts = OFPBUF_STUB_INITIALIZER(dhcp_opts_stub);
+
+    /* Parse inner actions. */
+    while (!lexer_match(ctx->lexer, LEX_T_RPAREN)) {
+        if (!parse_dhcp_option(ctx, &dhcp_opts)) {
+            return;
+        }
+    }
+
+    /* controller. */
+    size_t oc_offset = start_controller_op(ctx->ofpacts,
+                                           ACTION_OPCODE_DHCP_OFFER, true);
+    ofpbuf_put(ctx->ofpacts, dhcp_opts.data, dhcp_opts.size);
+    finish_controller_op(ctx->ofpacts, oc_offset);
+
+    /* Free memory. */
+    ofpbuf_uninit(&dhcp_opts);
+}
+
+static bool
 action_force_match(struct action_context *ctx, enum lex_type t)
 {
     if (lexer_match(ctx->lexer, t)) {
@@ -475,6 +618,8 @@ parse_action(struct action_context *ctx)
         parse_get_arp_action(ctx);
     } else if (lexer_match_id(ctx->lexer, "put_arp")) {
         parse_put_arp_action(ctx);
+    } else if (lexer_match_id(ctx->lexer, "dhcp_offer")) {
+        parse_dhcp_offer_action(ctx);
     } else {
         action_syntax_error(ctx, "expecting action");
     }
diff --git a/ovn/lib/actions.h b/ovn/lib/actions.h
index 29af06f..6c74878 100644
--- a/ovn/lib/actions.h
+++ b/ovn/lib/actions.h
@@ -44,6 +44,11 @@ enum action_opcode {
      *     MFF_ETH_SRC = mac
      */
     ACTION_OPCODE_PUT_ARP,
+
+    /* "dhcp_offer(...dhcp actions ...}".
+     *
+     */
+    ACTION_OPCODE_DHCP_OFFER,
 };
 
 /* Header. */
@@ -58,6 +63,9 @@ struct action_params {
      * expr_parse()). */
     const struct shash *symtab;
 
+    /* hmap of 'struct dhcp_opts_map'  to support 'dhcp_offer' */
+    const struct hmap *dhcp_opts;
+
     /* Looks up logical port 'port_name'.  If found, stores its port number in
      * '*portp' and returns true; otherwise, returns false. */
     bool (*lookup_port)(const void *aux, const char *port_name,
diff --git a/ovn/lib/automake.mk b/ovn/lib/automake.mk
index 9e09352..7294742 100644
--- a/ovn/lib/automake.mk
+++ b/ovn/lib/automake.mk
@@ -10,7 +10,8 @@ ovn_lib_libovn_la_SOURCES = \
 	ovn/lib/expr.h \
 	ovn/lib/lex.c \
 	ovn/lib/lex.h \
-	ovn/lib/logical-fields.h
+	ovn/lib/logical-fields.h \
+	ovn/lib/ovn-dhcp.h
 nodist_ovn_lib_libovn_la_SOURCES = \
 	ovn/lib/ovn-nb-idl.c \
 	ovn/lib/ovn-nb-idl.h \
diff --git a/ovn/lib/expr.c b/ovn/lib/expr.c
index f274ab4..05a5c8e 100644
--- a/ovn/lib/expr.c
+++ b/ovn/lib/expr.c
@@ -405,39 +405,6 @@ expr_print(const struct expr *e)
 
 /* Parsing. */
 
-/* Type of a "union expr_constant" or "struct expr_constant_set". */
-enum expr_constant_type {
-    EXPR_C_INTEGER,
-    EXPR_C_STRING
-};
-
-/* A string or integer constant (one must know which from context). */
-union expr_constant {
-    /* Integer constant.
-     *
-     * The width of a constant isn't always clear, e.g. if you write "1",
-     * there's no way to tell whether you mean for that to be a 1-bit constant
-     * or a 128-bit constant or somewhere in between. */
-    struct {
-        union mf_subvalue value;
-        union mf_subvalue mask; /* Only initialized if 'masked'. */
-        bool masked;
-
-        enum lex_format format; /* From the constant's lex_token. */
-    };
-
-    /* Null-terminated string constant. */
-    char *string;
-};
-
-/* A collection of "union expr_constant"s of the same type. */
-struct expr_constant_set {
-    union expr_constant *values;  /* Constants. */
-    size_t n_values;              /* Number of constants. */
-    enum expr_constant_type type; /* Type of the constants. */
-    bool in_curlies;              /* Whether the constants were in {}. */
-};
-
 /* A reference to a symbol or a subfield of a symbol.
  *
  * For string fields, ofs and n_bits are 0. */
@@ -457,7 +424,6 @@ struct expr_context {
 
 struct expr *expr_parse__(struct expr_context *);
 static void expr_not(struct expr *);
-static void expr_constant_set_destroy(struct expr_constant_set *);
 static bool parse_field(struct expr_context *, struct expr_field *);
 
 static bool
@@ -838,7 +804,7 @@ parse_constant_set(struct expr_context *ctx, struct expr_constant_set *cs)
     return ok;
 }
 
-static void
+void
 expr_constant_set_destroy(struct expr_constant_set *cs)
 {
     if (cs) {
@@ -2928,3 +2894,15 @@ exit:
     }
     return ctx.error;
 }
+
+bool
+expr_parse_constant_set(struct lexer *lexer, const struct shash *symtab,
+                        struct expr_constant_set *cs)
+{
+    struct expr_context ctx = {
+       .lexer = lexer,
+       .symtab = symtab,
+    };
+
+    return parse_constant_set(&ctx, cs);
+}
diff --git a/ovn/lib/expr.h b/ovn/lib/expr.h
index 1327789..99e7aaf 100644
--- a/ovn/lib/expr.h
+++ b/ovn/lib/expr.h
@@ -391,4 +391,41 @@ char *expr_parse_field(struct lexer *, int n_bits, bool rw,
                        const struct shash *symtab, struct mf_subfield *,
                        struct expr **prereqsp);
 
+/* Type of a "union expr_constant" or "struct expr_constant_set". */
+enum expr_constant_type {
+    EXPR_C_INTEGER,
+    EXPR_C_STRING
+};
+
+/* A string or integer constant (one must know which from context). */
+union expr_constant {
+    /* Integer constant.
+     *
+     * The width of a constant isn't always clear, e.g. if you write "1",
+     * there's no way to tell whether you mean for that to be a 1-bit constant
+     * or a 128-bit constant or somewhere in between. */
+    struct {
+        union mf_subvalue value;
+        union mf_subvalue mask; /* Only initialized if 'masked'. */
+        bool masked;
+
+        enum lex_format format; /* From the constant's lex_token. */
+    };
+
+    /* Null-terminated string constant. */
+    char *string;
+};
+
+/* A collection of "union expr_constant"s of the same type. */
+struct expr_constant_set {
+    union expr_constant *values;  /* Constants. */
+    size_t n_values;              /* Number of constants. */
+    enum expr_constant_type type; /* Type of the constants. */
+    bool in_curlies;              /* Whether the constants were in {}. */
+};
+
+bool expr_parse_constant_set(struct lexer *, const struct shash *symtab,
+                             struct expr_constant_set *cs);
+void expr_constant_set_destroy(struct expr_constant_set *cs);
+
 #endif /* ovn/expr.h */
diff --git a/ovn/lib/ovn-dhcp.h b/ovn/lib/ovn-dhcp.h
new file mode 100644
index 0000000..fae944f
--- /dev/null
+++ b/ovn/lib/ovn-dhcp.h
@@ -0,0 +1,121 @@
+/*
+ * Copyright (c) 2016 Red Hat, Inc.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at:
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+#ifndef OVN_DHCP_H
+#define OVN_DHCP_H 1
+
+#include "hmap.h"
+#include "hash.h"
+
+enum dhcp_opt_type {
+    DHCP_OPT_TYPE_BOOL,
+    DHCP_OPT_TYPE_UINT8,
+    DHCP_OPT_TYPE_UINT16,
+    DHCP_OPT_TYPE_UINT32,
+    DHCP_OPT_TYPE_IP4,
+    DHCP_OPT_TYPE_STATIC_ROUTES,
+    DHCP_OPT_TYPE_STR
+};
+
+struct dhcp_opts_map {
+    struct hmap_node hmap_node;
+    char *name;
+    size_t code;
+    size_t type;
+};
+
+#define DHCP_OPTION(NAME, CODE, TYPE) \
+    {.name = NAME, .code = CODE, .type = TYPE}
+
+#define OFFERIP              DHCP_OPTION("offerip", 0, DHCP_OPT_TYPE_IP4)
+#define DHCP_OPT_NETMASK     DHCP_OPTION("netmask", 1, DHCP_OPT_TYPE_IP4)
+#define DHCP_OPT_ROUTER      DHCP_OPTION("router", 3, DHCP_OPT_TYPE_IP4)
+#define DHCP_OPT_DNS_SERVER  DHCP_OPTION("dns_server", 6, DHCP_OPT_TYPE_IP4)
+#define DHCP_OPT_LOG_SERVER  DHCP_OPTION("log_server", 7, DHCP_OPT_TYPE_IP4)
+#define DHCP_OPT_LPR_SERVER  DHCP_OPTION("lpr_server", 9, DHCP_OPT_TYPE_IP4)
+#define DHCP_OPT_SWAP_SERVER DHCP_OPTION("swap_server", 16, DHCP_OPT_TYPE_IP4)
+
+#define DHCP_OPT_POLICY_FILTER \
+    DHCP_OPTION("policy_filter", 21, DHCP_OPT_TYPE_IP4)
+
+#define DHCP_OPT_ROUTER_SOLICITATION \
+    DHCP_OPTION("router_solicitation", 32, DHCP_OPT_TYPE_IP4)
+
+#define DHCP_OPT_NIS_SERVER  DHCP_OPTION("nis_server", 41, DHCP_OPT_TYPE_IP4)
+#define DHCP_OPT_NTP_SERVER  DHCP_OPTION("ntp_server", 42, DHCP_OPT_TYPE_IP4)
+#define DHCP_OPT_SERVER_ID   DHCP_OPTION("server_id", 54, DHCP_OPT_TYPE_IP4)
+#define DHCP_OPT_TFTP_SERVER DHCP_OPTION("tftp_server", 66, DHCP_OPT_TYPE_IP4)
+
+#define DHCP_OPT_CLASSLESS_STATIC_ROUTE \
+    DHCP_OPTION("classless_static_route", 121, DHCP_OPT_TYPE_STATIC_ROUTES)
+
+#define DHCP_OPT_IP_FORWARD_ENABLE \
+    DHCP_OPTION("ip_forward_enable", 19, DHCP_OPT_TYPE_BOOL)
+#define DHCP_OPT_ROUTER_DISCOVERY \
+    DHCP_OPTION("router_discovery", 31, DHCP_OPT_TYPE_BOOL)
+#define DHCP_OPT_ETHERNET_ENCAP \
+    DHCP_OPTION("ethernet_encap", 36, DHCP_OPT_TYPE_BOOL)
+
+#define DHCP_OPT_DEFAULT_TTL \
+    DHCP_OPTION("default_ttl", 23, DHCP_OPT_TYPE_UINT8)
+
+#define DHCP_OPT_TCP_TTL  DHCP_OPTION("tcp_ttl", 37, DHCP_OPT_TYPE_UINT8)
+#define DHCP_OPT_MTU      DHCP_OPTION("mtu", 26, DHCP_OPT_TYPE_UINT16)
+#define DHCP_OPT_LEASE_TIME \
+    DHCP_OPTION("lease_time", 51, DHCP_OPT_TYPE_UINT32)
+
+static inline uint32_t
+dhcp_opt_hash(char *opt_name)
+{
+    return hash_string(opt_name, 0);
+}
+
+static inline struct dhcp_opts_map *
+dhcp_opts_find(const struct hmap *dhcp_opts, char *opt_name)
+{
+    struct dhcp_opts_map *dhcp_opt;
+    HMAP_FOR_EACH_WITH_HASH (dhcp_opt, hmap_node, dhcp_opt_hash(opt_name),
+                             dhcp_opts) {
+        if (!strcmp(dhcp_opt->name, opt_name)) {
+            return dhcp_opt;
+        }
+    }
+
+    return NULL;
+}
+
+static inline void
+dhcp_opt_add(struct hmap *dhcp_opts, char *opt_name, size_t code, size_t type)
+{
+    struct dhcp_opts_map *dhcp_opt = xzalloc(sizeof *dhcp_opt);
+    dhcp_opt->name = xstrdup(opt_name);
+    dhcp_opt->code = code;
+    dhcp_opt->type = type;
+    hmap_insert(dhcp_opts, &dhcp_opt->hmap_node, dhcp_opt_hash(opt_name));
+}
+
+static inline void
+dhcp_opts_destroy(struct hmap *dhcp_opts)
+{
+    struct dhcp_opts_map *dhcp_opt;
+    HMAP_FOR_EACH_POP(dhcp_opt, hmap_node, dhcp_opts) {
+        free(dhcp_opt->name);
+        free(dhcp_opt);
+    }
+    hmap_destroy(dhcp_opts);
+}
+
+#endif /* OVN_DHCP_H */
diff --git a/ovn/ovn-sb.ovsschema b/ovn/ovn-sb.ovsschema
index 06e8a07..1b20d45 100644
--- a/ovn/ovn-sb.ovsschema
+++ b/ovn/ovn-sb.ovsschema
@@ -1,7 +1,7 @@
 {
     "name": "OVN_Southbound",
-    "version": "1.3.0",
-    "cksum": "654726257 5528",
+    "version": "1.4.0",
+    "cksum": "1002497001 5942",
     "tables": {
         "Chassis": {
             "columns": {
@@ -110,4 +110,13 @@
                 "ip": {"type": "string"},
                 "mac": {"type": "string"}},
             "indexes": [["logical_port", "ip"]],
+            "isRoot": true},
+        "DHCP_Options": {
+            "columns": {
+                "name": {"type": "string"},
+                "code": {
+                    "type": {"key": {"type": "integer",
+                                     "minInteger": 0, "maxInteger": 254}}},
+                "type": {"type": {"key": {"type": "integer",
+                                 "minInteger": 0, "maxInteger": 6}}}},
             "isRoot": true}}}
diff --git a/ovn/ovn-sb.xml b/ovn/ovn-sb.xml
index efd2f9a..8e44de0 100644
--- a/ovn/ovn-sb.xml
+++ b/ovn/ovn-sb.xml
@@ -1022,6 +1022,35 @@
 
           <p><b>Example:</b> <code>put_arp(inport, arp.spa, arp.sha);</code></p>
         </dd>
+
+        <dt>
+          <code>dhcp_offer(<var>D1</var> = <var>V1</var>, <var>D2</var> = <var>V2</var>, ...,<var>Dn</var> = <var>Vn</var>);</code>
+        </dt>
+
+        <dd>
+          <p>
+            <b>Parameters</b>: DHCP option name <var>Dn</var>, DHCP option
+            value <var>Vn</var>.
+          </p>
+
+          <p>
+            Valid only in the ingress pipeline.
+          </p>
+
+          <p>
+            DHCP options and values defined in the parameters are added in
+            the 'DHCP options' field of the incoming DHCP DISCOVER/REQUEST
+            packet and resumed in the pipeline.
+          </p>
+
+          <p>
+            <b>Example:</b>
+              <code>
+                dhcp_offer(offerip = 10.0.0.2, router = 10.0.0.1,
+                           netmask = 255.255.255.0, dns_server = {8.8.8.8,7.7.7.7});
+              </code>
+           </p>
+        </dd>
       </dl>
 
       <p>
@@ -1511,4 +1540,19 @@ tcp.flags = RST;
       The Ethernet address to which the IP is bound.
     </column>
   </table>
+
+  <table name="DHCP_Options" title="DHCP Options supported by native OVN DHCP">
+
+    <column name="name">
+      Name of the DHCP option
+    </column>
+
+    <column name="code">
+      DHCP option code
+    </column>
+
+    <column name="type">
+      Data type of the DHCP option code
+    </column>
+  </table>
 </database>
diff --git a/tests/automake.mk b/tests/automake.mk
index 0b77617..02dc99b 100644
--- a/tests/automake.mk
+++ b/tests/automake.mk
@@ -324,6 +324,7 @@ tests_ovstest_SOURCES = \
 	tests/test-odp.c \
 	tests/test-ofpbuf.c \
 	tests/test-ovn.c \
+	tests/test-ovn-dhcp.c \
 	tests/test-packets.c \
 	tests/test-random.c \
 	tests/test-rcu.c \
diff --git a/tests/ovn.at b/tests/ovn.at
index 8c1f1be..971c8cd 100644
--- a/tests/ovn.at
+++ b/tests/ovn.at
@@ -2341,4 +2341,42 @@ OVS_APP_EXIT_AND_WAIT([ovsdb-server])
 
 AT_CLEANUP
 
+AT_SETUP([ovn -- dhcp_offer action])
+dhcp_options="offerip=10.0.0.4,router=10.0.0.1,netmask=255.255.254.0,mtu=1400"
+echo "dhcp_options = $dhcp_options"
+
+expected_dhcp_opts="0a00000403040a0000010104fffffe001a020578"
+AT_CHECK([ovstest test-ovn-dhcp-offer-action $dhcp_options $expected_dhcp_opts],
+         [0], [ignore])
+
+dhcp_options="offerip=10.0.0.4,router=10.0.0.1,netmask=255.255.255.0,mtu=1400,\
+ip_forward_enable=1,default_ttl=121,dns_server={8.8.8.8,7.7.7.7},\
+classless_static_route={30.0.0.0/24,10.0.0.4,40.0.0.0/16,10.0.0.6,\
+0.0.0.0/0,10.0.0.1},ethernet_encap=1"
+
+# offerip=10.0.0.4           --> 0a000004
+# router=10.0.0.1            --> 03040a000001
+# netmask=255.255.255.0      --> 0104ffffff00
+# mtu=1400                   --> 1a020578
+# ip_forward_enable-1        --> 130101
+# default_ttl=121            --> 170179
+# dns_server={8.8.8.8,7.7.7.7} --> 06080808080807070707
+# classless_static_route=      --> 7914
+# {30.0.0.0/24,10.0.0.4       --> 181e00000a000004
+#  40.0.0.0/16,10.0.0.6       --> 1028000a000006
+#  0.0.0.0/0,10.0.0.1}        --> 000a000001
+# ethernet_encap=1            --> 240101
+# router_discovery=0          --> 1f0100
+
+expected_dhcp_opts="0a00000403040a0000010104ffffff001a020578130101170179\
+060808080808070707077914181e00000a0000041028000a000006000a000001240101"
+
+AT_CHECK([ovstest test-ovn-dhcp-offer-action $dhcp_options $expected_dhcp_opts],
+         [0], [ignore])
+
+dhcp_options="offerip=10.0.0.4,invalid_options=inv_value"
+expected_dhcp_opts="00"
+AT_CHECK([ovstest test-ovn-dhcp-offer-action $dhcp_options $expected_dhcp_opts],
+         [1], [ignore])
 
+AT_CLEANUP
diff --git a/tests/test-ovn-dhcp.c b/tests/test-ovn-dhcp.c
new file mode 100644
index 0000000..60726d9
--- /dev/null
+++ b/tests/test-ovn-dhcp.c
@@ -0,0 +1,117 @@
+/* Copyright (c) 2016 Red Hat, Inc.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at:
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+#include <assert.h>
+#include <config.h>
+#include "command-line.h"
+#include "openvswitch/ofp-actions.h"
+#include "ovstest.h"
+#include "ovn/lib/actions.h"
+#include "ovn/lib/ovn-dhcp.h"
+
+
+static void
+test_dhcp_offer_action(int argc OVS_UNUSED, char *argv[] OVS_UNUSED)
+{
+    if (argc != 3) {
+        printf("Usage: %s dhcp-options expected-dhcp-opt-codes", argv[0]);
+        exit(1);
+    }
+
+    struct hmap dhcp_opts = HMAP_INITIALIZER(&dhcp_opts);
+
+    dhcp_opt_add(&dhcp_opts, "offerip", 0, DHCP_OPT_TYPE_IP4);
+    dhcp_opt_add(&dhcp_opts, "netmask", 1, DHCP_OPT_TYPE_IP4);
+    dhcp_opt_add(&dhcp_opts, "router",  3, DHCP_OPT_TYPE_IP4);
+    dhcp_opt_add(&dhcp_opts, "dns_server", 6, DHCP_OPT_TYPE_IP4);
+    dhcp_opt_add(&dhcp_opts, "log_server", 7, DHCP_OPT_TYPE_IP4);
+    dhcp_opt_add(&dhcp_opts, "lpr_server",  9, DHCP_OPT_TYPE_IP4);
+    dhcp_opt_add(&dhcp_opts, "swap_server", 16, DHCP_OPT_TYPE_IP4);
+    dhcp_opt_add(&dhcp_opts, "policy_filter", 21, DHCP_OPT_TYPE_IP4);
+    dhcp_opt_add(&dhcp_opts, "router_solicitation",  32, DHCP_OPT_TYPE_IP4);
+    dhcp_opt_add(&dhcp_opts, "nis_server", 41, DHCP_OPT_TYPE_IP4);
+    dhcp_opt_add(&dhcp_opts, "ntp_server", 42, DHCP_OPT_TYPE_IP4);
+    dhcp_opt_add(&dhcp_opts, "server_id",  54, DHCP_OPT_TYPE_IP4);
+    dhcp_opt_add(&dhcp_opts, "tftp_server", 66, DHCP_OPT_TYPE_IP4);
+    dhcp_opt_add(&dhcp_opts, "classless_static_route", 121,
+                 DHCP_OPT_TYPE_STATIC_ROUTES);
+    dhcp_opt_add(&dhcp_opts, "ip_forward_enable",  19, DHCP_OPT_TYPE_BOOL);
+    dhcp_opt_add(&dhcp_opts, "router_discovery", 31, DHCP_OPT_TYPE_BOOL);
+    dhcp_opt_add(&dhcp_opts, "ethernet_encap", 36, DHCP_OPT_TYPE_BOOL);
+    dhcp_opt_add(&dhcp_opts, "default_ttl",  23, DHCP_OPT_TYPE_UINT8);
+    dhcp_opt_add(&dhcp_opts, "tcp_ttl", 37, DHCP_OPT_TYPE_UINT8);
+    dhcp_opt_add(&dhcp_opts, "mtu", 26, DHCP_OPT_TYPE_UINT16);
+    dhcp_opt_add(&dhcp_opts, "lease_time",  51, DHCP_OPT_TYPE_UINT32);
+
+    struct action_params ap = {
+        .dhcp_opts = &dhcp_opts,
+    };
+
+
+    char *actions = xasprintf("dhcp_offer(%s);", argv[1]);
+    uint64_t ofpacts_stub[128 / 8];
+    struct ofpbuf ofpacts = OFPBUF_STUB_INITIALIZER(
+        ofpacts_stub);
+    struct expr *prereqs;
+    char *error;
+
+    error = actions_parse_string(actions, &ap, &ofpacts, &prereqs);
+    dhcp_opts_destroy(&dhcp_opts);
+    free(actions);
+    if (error) {
+        printf("actions_parse_string failed with error - %s\n", error);
+        free(error);
+        exit(1);
+    }
+
+    if (ofpacts.size < (sizeof(struct ofpact_controller) +
+        sizeof(struct action_header))) {
+        ovs_fatal(1, "Error. dhcp_offer parse action failed : "
+                  " ofpact_controller not configured");
+    }
+
+    struct ofpact_controller *oc = ofpbuf_pull(&ofpacts, sizeof *oc);
+    if (!oc->pause) {
+        ovs_fatal(1, "Error. dhcp_offer parse action failed : pause flag "
+                  " not set in ofpact_controller");
+    }
+    struct action_header *ah = ofpbuf_pull(&ofpacts, sizeof *ah);
+    if (ah->opcode != htonl(ACTION_OPCODE_DHCP_OFFER)) {
+        ovs_fatal(1, "Error. dhcp_offer parse action failed : dhcp_offer "
+                  "action header flag not set");
+    }
+
+    uint64_t expected_dhcp_opts_stub[128 / 8];
+    struct ofpbuf expected_dhcp_opts = OFPBUF_STUB_INITIALIZER(
+        expected_dhcp_opts_stub);
+    if (ofpbuf_put_hex(&expected_dhcp_opts, argv[2], NULL)[0] != '\0') {
+        ovs_fatal(1, "Error. Invalid expected dhcp opts");
+    }
+
+    if (oc->userdata_len  != (expected_dhcp_opts.size + sizeof *ah)) {
+        ovs_fatal(1, "Error. dhcp_offer parse action failed : userdata length"
+                  " mismatch. Expected - %lu : Actual - %u",
+                  expected_dhcp_opts.size + sizeof *ah, oc->userdata_len);
+    }
+
+    if (memcmp(ofpacts.data, expected_dhcp_opts.data, expected_dhcp_opts.size)) {
+        ovs_fatal(1, "Error. dhcp_offer parse action failed : dhcp opts are"
+                  " not as expected");
+    }
+
+    exit(0);
+}
+
+OVSTEST_REGISTER("test-ovn-dhcp-offer-action", test_dhcp_offer_action);
