diff --git a/northd/ovn-northd.c b/northd/ovn-northd.c
index 0e5092a..a377e83 100644
--- a/northd/ovn-northd.c
+++ b/northd/ovn-northd.c
@@ -6943,6 +6943,7 @@ build_lswitch_arp_nd_responder_known_ips(struct 
ovn_port *op,
                                           struct ds *match)
  {
      if (op->nbsp) {
+        const char *arp_proxy;
          if (!strcmp(op->nbsp->type, "virtual")) {
              /* Handle
               *  - GARPs for virtual ip which belongs to a logical port
@@ -7096,6 +7097,43 @@ build_lswitch_arp_nd_responder_known_ips(struct 
ovn_port *op,
                  }
              }
          }
+
+        /*
+         * Add responses for ARP proxies.
+         */
+        arp_proxy = smap_get(&op->nbsp->options,"arp_proxy");
+        if (arp_proxy && op->peer) {
+            char *ips, *ip, *rest;
+
+            ips = xstrdup(arp_proxy);
+            rest = ips;
+
+            while ((ip = strtok_r(rest,",", &rest))) {
+                ds_clear(match);
+                ds_put_format(match, "arp.tpa == %s && arp.op == 1", ip);
+
+                ds_clear(actions);
+                ds_put_format(actions,
+                    "eth.dst = eth.src; "
+                    "eth.src = %s; "
+                    "arp.op = 2; /* ARP reply */ "
+                    "arp.tha = arp.sha; "
+                    "arp.sha = %s; "
+                    "arp.tpa = arp.spa; "
+                    "arp.spa = %s; "
+                    "outport = inport; "
+                    "flags.loopback = 1; "
+                    "output;",
+                    op->peer->lrp_networks.ea_s,
+                    op->peer->lrp_networks.ea_s,
+                    ip);
+
+                ovn_lflow_add_with_hint(lflows, op->od, 
S_SWITCH_IN_ARP_ND_RSP,
+                    50, ds_cstr(match), ds_cstr(actions),
+                    &op->nbsp->header_);
+            }
+            free(ips);
+        }
      }
  }

diff --git a/ovn-nb.xml b/ovn-nb.xml
index 02fd216..4b6c183 100644
--- a/ovn-nb.xml
+++ b/ovn-nb.xml
@@ -848,6 +848,15 @@
              </dd>
            </dl>
          </column>
+
+        <column name="options" key="arp_proxy">
+          Optional. A comma separated list IPv4 addresses that this
+          logical switch <code>router</code> port will reply to ARP 
requests.
+          Example: <code>169.254.239.254,169.254.239.2</code>. The
+          <ref column="options" key="router-port"/>'s logical router should
+          have a route to forward packets sent to configured proxy ARP 
IPs to
+          an appropriate destination.
+        </column>
        </group>

        <group title="Options for localnet ports">
diff --git a/tests/ovn.at b/tests/ovn.at
index 2c3c36d..c675cc9 100644
--- a/tests/ovn.at
+++ b/tests/ovn.at
@@ -26527,3 +26527,106 @@ AT_CHECK([test $(ovn-appctl -t ovn-controller 
coverage/read-counter lflow_run) =
  OVN_CLEANUP([hv1])
  AT_CLEANUP
  ])
+
+OVN_FOR_EACH_NORTHD([
+AT_SETUP([ovn -- proxy-arp: 1 HVs, 1 LSs, 1 lport/LS, 1 LR])
+AT_KEYWORDS([proxy-arp])
+ovn_start
+
+# Logical network:
+# One LR - lr1 has switch ls1 (192.16.1.0/24) connected to it,
+# and and one HV with IP 192.16.1.6.
+
+ovn-nbctl lr-add lr1
+ovn-nbctl ls-add ls1
+
+# Connect ls1 to lr1
+ovn-nbctl lrp-add lr1 ls1 00:00:00:01:02:f1 192.16.1.1/24
+ovn-nbctl lsp-add ls1 rp-ls1 -- set Logical_Switch_Port rp-ls1 \
+    type=router options:router-port=ls1 addresses=\"00:00:00:01:02:f1\"
+
+# Create logical port ls1-lp1 in ls1
+ovn-nbctl lsp-add ls1 ls1-lp1 \
+-- lsp-set-addresses ls1-lp1 "00:00:00:01:02:03 192.16.1.6"
+
+
+# Create one hypervisor and create OVS ports corresponding to logical 
ports.
+net_add n1
+
+sim_add pa-hv
+as pa-hv
+ovs-vsctl add-br br-phys
+ovn_attach n1 br-phys 192.16.0.1
+
+# Note: tx/rx are with respect to the LS port, so
+# tx on switch port is HV rx, etc.
+ovs-vsctl -- add-port br-int vif1 -- \
+    set interface vif1 external-ids:iface-id=ls1-lp1 \
+    options:tx_pcap=pa-hv/vif1-tx.pcap \
+    options:rxq_pcap=pa-hv/vif1-rx.pcap \
+    ofport-request=1
+
+# And proxy ARP flows for 69.254.239.254 and 169.254.239.2
+# and check that SB flows have been added.
+ovn-nbctl --wait=hv add Logical_Switch_Port rp-ls1 \
+options arp_proxy='"169.254.239.254,169.254.239.2"'
+ovn-sbctl dump-flows > sbflows
+AT_CAPTURE_FILE([sbflows])
+
+AT_CHECK([ovn-sbctl dump-flows | grep ls_in_arp_rsp | grep 
"169.254.239.2" | wc -l], [0], [dnl
+2
+])
+
+# Remove and check that the flows have been removed
+ovn-nbctl --wait=hv remove Logical_Switch_Port rp-ls1 options 
arp_proxy='"169.254.239.254,169.254.239.2"'
+
+AT_CHECK([ovn-sbctl dump-flows | grep ls_in_arp_rsp | grep 
"169.254.239.2" | wc -l], [0], [dnl
+0
+])
+
+# Add the flows back send arp request and check we see an ARP response
+ovn-nbctl --wait=hv add Logical_Switch_Port rp-ls1 \
+options arp_proxy='"169.254.239.254,169.254.239.2"'
+
+ls1_p1_mac=00:00:00:01:02:03
+ls1_p1_ip=192.16.1.6
+
+ls1_ro_mac=00:00:00:01:02:f1
+ls1_ro_ip=192.168.1.1
+
+proxy_ip1=169.254.239.254
+proxy_ip2=169.254.239.2
+
+bcast_mac=ff:ff:ff:ff:ff:ff
+
+# Send ARP request for 169.254.239.254
+packet="inport==\"ls1-lp1\" && eth.src==$ls1_p1_mac && 
eth.dst==$bcast_mac &&
+       arp.op==1 && arp.sha==$ls1_p1_mac && arp.spa==$ls1_p1_ip &&
+       arp.tha==$bcast_mac && arp.tpa==$proxy_ip1"
+
+as pa-hv ovs-appctl -t ovn-controller inject-pkt "$packet"
+
+ovs-ofctl dump-flows br-int| grep 169.254.239.254 | grep priority=50 > 
debug1
+AT_CAPTURE_FILE([debug1])
+
+
+# Check if packet hit the ARP reply ovs flow
+AT_CHECK([ovs-ofctl dump-flows br-int | \
+    grep "169.254.239.254" | \
+    grep "priority=50" | \
+    grep "arp_op=1" | \
+    grep "n_packets=1" | wc -l], [0], [dnl
+1
+])
+
+# Check that the HV gets an ARP reply
+expected="eth.src==$ls1_ro_mac && eth.dst==$ls1_p1_mac &&
+       arp.op==2 && arp.sha==$ls1_ro_mac && arp.spa==$proxy_ip1 &&
+       arp.tha==$ls1_p1_mac && arp.tpa==$ls1_p1_ip"
