diff --git a/dataplane/saiserver/routing.go b/dataplane/saiserver/routing.go
index 38887577..0ad054f5 100644
--- a/dataplane/saiserver/routing.go
+++ b/dataplane/saiserver/routing.go
@@ -532,6 +532,12 @@ func (nh *nextHop) CreateNextHop(ctx context.Context, req *saipb.CreateNextHopRe
 				},
 			})
 		case saipb.TunnelType_TUNNEL_TYPE_VXLAN:
+			if len(req.GetTunnelMac()) > 0 {
+				actions = append(actions,
+					fwdconfig.Action(fwdconfig.UpdateAction(fwdpb.UpdateType_UPDATE_TYPE_COPY, fwdpb.PacketFieldNum_PACKET_FIELD_NUM_ETHER_MAC_SRC).WithFieldSrc(fwdpb.PacketFieldNum_PACKET_FIELD_NUM_ETHER_MAC_DST)).Build(),
+					fwdconfig.Action(fwdconfig.UpdateAction(fwdpb.UpdateType_UPDATE_TYPE_SET, fwdpb.PacketFieldNum_PACKET_FIELD_NUM_ETHER_MAC_DST).WithValue(req.GetTunnelMac())).Build(),
+				)
+			}
 			actions = append(actions, &fwdpb.ActionDesc{
 				ActionType: fwdpb.ActionType_ACTION_TYPE_ENCAP,
 				Action: &fwdpb.ActionDesc_Encap{
@@ -554,6 +560,11 @@ func (nh *nextHop) CreateNextHop(ctx context.Context, req *saipb.CreateNextHopRe
 					},
 				},
 			})
+			if req.GetTunnelVni() != 0 {
+				vni := req.GetTunnelVni()
+				vniBytes := []byte{byte(vni >> 16), byte(vni >> 8), byte(vni)}
+				actions = append(actions, fwdconfig.Action(fwdconfig.UpdateAction(fwdpb.UpdateType_UPDATE_TYPE_SET, fwdpb.PacketFieldNum_PACKET_FIELD_NUM_VXLAN_VNI).WithValue(vniBytes)).Build())
+			}
 		default:
 			return nil, status.Errorf(codes.InvalidArgument, "unsupported tunnel type: %v", tunnel.GetAttr().GetType())
 		}
@@ -562,18 +573,6 @@ func (nh *nextHop) CreateNextHop(ctx context.Context, req *saipb.CreateNextHopRe
 			fwdconfig.Action(fwdconfig.UpdateAction(fwdpb.UpdateType_UPDATE_TYPE_SET, fwdpb.PacketFieldNum_PACKET_FIELD_NUM_IP_ADDR_DST).WithValue(req.GetIp())).Build(),
 			fwdconfig.Action(fwdconfig.UpdateAction(fwdpb.UpdateType_UPDATE_TYPE_SET, fwdpb.PacketFieldNum_PACKET_FIELD_NUM_NEXT_HOP_IP).WithValue(req.GetIp())).Build(),
 			fwdconfig.Action(fwdconfig.UpdateAction(fwdpb.UpdateType_UPDATE_TYPE_SET, fwdpb.PacketFieldNum_PACKET_FIELD_NUM_TUNNEL_ID).WithUint64Value(req.GetTunnelId())).Build(),
-		)
-
-		if req.GetTunnelVni() != 0 {
-			vni := req.GetTunnelVni()
-			vniBytes := []byte{byte(vni >> 16), byte(vni >> 8), byte(vni)}
-			actions = append(actions, fwdconfig.Action(fwdconfig.UpdateAction(fwdpb.UpdateType_UPDATE_TYPE_SET, fwdpb.PacketFieldNum_PACKET_FIELD_NUM_VXLAN_VNI).WithValue(vniBytes)).Build())
-		}
-		if len(req.GetTunnelMac()) > 0 {
-			actions = append(actions, fwdconfig.Action(fwdconfig.UpdateAction(fwdpb.UpdateType_UPDATE_TYPE_SET, fwdpb.PacketFieldNum_PACKET_FIELD_NUM_ETHER_MAC_DST).WithValue(req.GetTunnelMac())).Build())
-		}
-
-		actions = append(actions,
 			fwdconfig.Action(fwdconfig.LookupAction(NHActionTable)).Build(),
 			fwdconfig.Action(fwdconfig.LookupAction(TunnelEncap)).Build(),
 		)
diff --git a/dataplane/saiserver/routing_test.go b/dataplane/saiserver/routing_test.go
index 1d8ff364..b14f6385 100644
--- a/dataplane/saiserver/routing_test.go
+++ b/dataplane/saiserver/routing_test.go
@@ -678,6 +678,37 @@ func TestCreateNextHop(t *testing.T) {
 			TableId:   &fwdpb.TableId{ObjectId: &fwdpb.ObjectId{Id: NHTable}},
 			Entries: []*fwdpb.TableEntryAddRequest_Entry{{
 				Actions: []*fwdpb.ActionDesc{{
+					ActionType: fwdpb.ActionType_ACTION_TYPE_UPDATE,
+					Action: &fwdpb.ActionDesc_Update{
+						Update: &fwdpb.UpdateActionDesc{
+							Type: fwdpb.UpdateType_UPDATE_TYPE_COPY,
+							FieldId: &fwdpb.PacketFieldId{
+								Field: &fwdpb.PacketField{
+									FieldNum: fwdpb.PacketFieldNum_PACKET_FIELD_NUM_ETHER_MAC_SRC,
+								},
+							},
+							Field: &fwdpb.PacketFieldId{
+								Field: &fwdpb.PacketField{
+									FieldNum: fwdpb.PacketFieldNum_PACKET_FIELD_NUM_ETHER_MAC_DST,
+								},
+							},
+						},
+					},
+				}, {
+					ActionType: fwdpb.ActionType_ACTION_TYPE_UPDATE,
+					Action: &fwdpb.ActionDesc_Update{
+						Update: &fwdpb.UpdateActionDesc{
+							Type: fwdpb.UpdateType_UPDATE_TYPE_SET,
+							FieldId: &fwdpb.PacketFieldId{
+								Field: &fwdpb.PacketField{
+									FieldNum: fwdpb.PacketFieldNum_PACKET_FIELD_NUM_ETHER_MAC_DST,
+								},
+							},
+							Field: &fwdpb.PacketFieldId{Field: &fwdpb.PacketField{}},
+							Value: []byte{0x00, 0x11, 0x22, 0x33, 0x44, 0x55},
+						},
+					},
+				}, {
 					ActionType: fwdpb.ActionType_ACTION_TYPE_ENCAP,
 					Action: &fwdpb.ActionDesc_Encap{
 						Encap: &fwdpb.EncapActionDesc{
@@ -705,11 +736,11 @@ func TestCreateNextHop(t *testing.T) {
 							Type: fwdpb.UpdateType_UPDATE_TYPE_SET,
 							FieldId: &fwdpb.PacketFieldId{
 								Field: &fwdpb.PacketField{
-									FieldNum: fwdpb.PacketFieldNum_PACKET_FIELD_NUM_IP_ADDR_DST,
+									FieldNum: fwdpb.PacketFieldNum_PACKET_FIELD_NUM_VXLAN_VNI,
 								},
 							},
 							Field: &fwdpb.PacketFieldId{Field: &fwdpb.PacketField{}},
-							Value: []byte{0x7f, 0x00, 0x00, 0x01},
+							Value: []byte{0x12, 0x34, 0x56},
 						},
 					},
 				}, {
@@ -719,7 +750,7 @@ func TestCreateNextHop(t *testing.T) {
 							Type: fwdpb.UpdateType_UPDATE_TYPE_SET,
 							FieldId: &fwdpb.PacketFieldId{
 								Field: &fwdpb.PacketField{
-									FieldNum: fwdpb.PacketFieldNum_PACKET_FIELD_NUM_NEXT_HOP_IP,
+									FieldNum: fwdpb.PacketFieldNum_PACKET_FIELD_NUM_IP_ADDR_DST,
 								},
 							},
 							Field: &fwdpb.PacketFieldId{Field: &fwdpb.PacketField{}},
@@ -733,25 +764,11 @@ func TestCreateNextHop(t *testing.T) {
 							Type: fwdpb.UpdateType_UPDATE_TYPE_SET,
 							FieldId: &fwdpb.PacketFieldId{
 								Field: &fwdpb.PacketField{
-									FieldNum: fwdpb.PacketFieldNum_PACKET_FIELD_NUM_TUNNEL_ID,
-								},
-							},
-							Field: &fwdpb.PacketFieldId{Field: &fwdpb.PacketField{}},
-							Value: []byte{0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0x0f},
-						},
-					},
-				}, {
-					ActionType: fwdpb.ActionType_ACTION_TYPE_UPDATE,
-					Action: &fwdpb.ActionDesc_Update{
-						Update: &fwdpb.UpdateActionDesc{
-							Type: fwdpb.UpdateType_UPDATE_TYPE_SET,
-							FieldId: &fwdpb.PacketFieldId{
-								Field: &fwdpb.PacketField{
-									FieldNum: fwdpb.PacketFieldNum_PACKET_FIELD_NUM_VXLAN_VNI,
+									FieldNum: fwdpb.PacketFieldNum_PACKET_FIELD_NUM_NEXT_HOP_IP,
 								},
 							},
 							Field: &fwdpb.PacketFieldId{Field: &fwdpb.PacketField{}},
-							Value: []byte{0x12, 0x34, 0x56},
+							Value: []byte{0x7f, 0x00, 0x00, 0x01},
 						},
 					},
 				}, {
@@ -761,11 +778,11 @@ func TestCreateNextHop(t *testing.T) {
 							Type: fwdpb.UpdateType_UPDATE_TYPE_SET,
 							FieldId: &fwdpb.PacketFieldId{
 								Field: &fwdpb.PacketField{
-									FieldNum: fwdpb.PacketFieldNum_PACKET_FIELD_NUM_ETHER_MAC_DST,
+									FieldNum: fwdpb.PacketFieldNum_PACKET_FIELD_NUM_TUNNEL_ID,
 								},
 							},
 							Field: &fwdpb.PacketFieldId{Field: &fwdpb.PacketField{}},
-							Value: []byte{0x00, 0x11, 0x22, 0x33, 0x44, 0x55},
+							Value: []byte{0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0x0f},
 						},
 					},
 				}, {
diff --git a/dataplane/saiserver/tunnel.go b/dataplane/saiserver/tunnel.go
index abe5dc32..923b3b1b 100644
--- a/dataplane/saiserver/tunnel.go
+++ b/dataplane/saiserver/tunnel.go
@@ -30,6 +30,8 @@ import (
 	fwdpb "github.com/openconfig/lemming/proto/forwarding"
 )
 
+const defaultEncapTTL = 255 // Default of SAI_TUNNEL_ATTR_ENCAP_TTL_VAL.
+
 type tunnel struct {
 	saipb.UnimplementedTunnelServer
 	mgr       *attrmgr.AttrMgr
@@ -68,9 +70,18 @@ func (t *tunnel) CreateTunnel(ctx context.Context, req *saipb.CreateTunnelReques
 	}
 
 	ttlMode := req.GetEncapTtlMode()
-	if ttlMode == saipb.TunnelTtlMode_TUNNEL_TTL_MODE_UNIFORM_MODEL { // Copy the TTL from the inner IP header.
+	switch ttlMode {
+	case saipb.TunnelTtlMode_TUNNEL_TTL_MODE_UNSPECIFIED, saipb.TunnelTtlMode_TUNNEL_TTL_MODE_UNIFORM_MODEL:
+		// Copy the TTL from the inner IP header.
 		actions = append(actions, fwdconfig.Action(fwdconfig.UpdateAction(fwdpb.UpdateType_UPDATE_TYPE_COPY, fwdpb.PacketFieldNum_PACKET_FIELD_NUM_IP_HOP).
 			WithFieldSrc(fwdpb.PacketFieldNum_PACKET_FIELD_NUM_IP_HOP).WithFieldSrcInstance(1)).Build())
+	case saipb.TunnelTtlMode_TUNNEL_TTL_MODE_PIPE_MODEL:
+		ttl := uint8(defaultEncapTTL)
+		if req.EncapTtlVal != nil {
+			ttl = uint8(req.GetEncapTtlVal())
+		}
+		actions = append(actions, fwdconfig.Action(fwdconfig.UpdateAction(fwdpb.UpdateType_UPDATE_TYPE_SET, fwdpb.PacketFieldNum_PACKET_FIELD_NUM_IP_HOP).
+			WithValue([]byte{ttl})).Build())
 	}
 
 	if req.GetEncapSrcIp() != nil {
diff --git a/dataplane/saiserver/tunnel_test.go b/dataplane/saiserver/tunnel_test.go
index 8cb138a7..185e75fa 100644
--- a/dataplane/saiserver/tunnel_test.go
+++ b/dataplane/saiserver/tunnel_test.go
@@ -135,6 +135,18 @@ func TestCreateTunnel(t *testing.T) {
 							Value:   []byte{0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0x0a},
 						},
 					},
+				}, {
+					ActionType: fwdpb.ActionType_ACTION_TYPE_UPDATE,
+					Action: &fwdpb.ActionDesc_Update{
+						Update: &fwdpb.UpdateActionDesc{
+							Type: fwdpb.UpdateType_UPDATE_TYPE_COPY,
+							Field: &fwdpb.PacketFieldId{Field: &fwdpb.PacketField{
+								FieldNum: fwdpb.PacketFieldNum_PACKET_FIELD_NUM_IP_HOP,
+								Instance: 1,
+							}},
+							FieldId: &fwdpb.PacketFieldId{Field: &fwdpb.PacketField{FieldNum: fwdpb.PacketFieldNum_PACKET_FIELD_NUM_IP_HOP}},
+						},
+					},
 				}, {
 					ActionType: fwdpb.ActionType_ACTION_TYPE_UPDATE,
 					Action: &fwdpb.ActionDesc_Update{
@@ -158,6 +170,119 @@ func TestCreateTunnel(t *testing.T) {
 				}},
 			}},
 		},
+	}, {
+		desc: "vxlan tunnel pipe ttl",
+		req: &saipb.CreateTunnelRequest{
+			Type:              saipb.TunnelType_TUNNEL_TYPE_VXLAN.Enum(),
+			EncapTtlMode:      saipb.TunnelTtlMode_TUNNEL_TTL_MODE_PIPE_MODEL.Enum(),
+			EncapTtlVal:       proto.Uint32(32),
+			UnderlayInterface: proto.Uint64(10),
+		},
+		wantReq: &fwdpb.TableEntryAddRequest{
+			ContextId: &fwdpb.ContextId{Id: "foo"},
+			TableId:   &fwdpb.TableId{ObjectId: &fwdpb.ObjectId{Id: TunnelEncap}},
+			Entries: []*fwdpb.TableEntryAddRequest_Entry{{
+				EntryDesc: &fwdpb.EntryDesc{
+					Entry: &fwdpb.EntryDesc_Exact{
+						Exact: &fwdpb.ExactEntryDesc{
+							Fields: []*fwdpb.PacketFieldBytes{{
+								FieldId: &fwdpb.PacketFieldId{
+									Field: &fwdpb.PacketField{FieldNum: fwdpb.PacketFieldNum_PACKET_FIELD_NUM_TUNNEL_ID},
+								},
+								Bytes: []byte{0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0x01},
+							}},
+						},
+					},
+				},
+				Actions: []*fwdpb.ActionDesc{{
+					ActionType: fwdpb.ActionType_ACTION_TYPE_UPDATE,
+					Action: &fwdpb.ActionDesc_Update{
+						Update: &fwdpb.UpdateActionDesc{
+							Type:    fwdpb.UpdateType_UPDATE_TYPE_SET,
+							Field:   &fwdpb.PacketFieldId{Field: &fwdpb.PacketField{}},
+							FieldId: &fwdpb.PacketFieldId{Field: &fwdpb.PacketField{FieldNum: fwdpb.PacketFieldNum_PACKET_FIELD_NUM_OUTPUT_IFACE}},
+							Value:   []byte{0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0x0a},
+						},
+					},
+				}, {
+					ActionType: fwdpb.ActionType_ACTION_TYPE_UPDATE,
+					Action: &fwdpb.ActionDesc_Update{
+						Update: &fwdpb.UpdateActionDesc{
+							Type:    fwdpb.UpdateType_UPDATE_TYPE_SET,
+							Field:   &fwdpb.PacketFieldId{Field: &fwdpb.PacketField{}},
+							FieldId: &fwdpb.PacketFieldId{Field: &fwdpb.PacketField{FieldNum: fwdpb.PacketFieldNum_PACKET_FIELD_NUM_IP_HOP}},
+							Value:   []byte{32},
+						},
+					},
+				}, {
+					ActionType: fwdpb.ActionType_ACTION_TYPE_UPDATE,
+					Action: &fwdpb.ActionDesc_Update{
+						Update: &fwdpb.UpdateActionDesc{
+							Type:    fwdpb.UpdateType_UPDATE_TYPE_SET,
+							Field:   &fwdpb.PacketFieldId{Field: &fwdpb.PacketField{}},
+							FieldId: &fwdpb.PacketFieldId{Field: &fwdpb.PacketField{FieldNum: fwdpb.PacketFieldNum_PACKET_FIELD_NUM_L4_PORT_DST}},
+							Value:   []byte{0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0x12, 0xb5},
+						},
+					},
+				}},
+			}},
+		},
+	}, {
+		desc: "vxlan tunnel pipe default ttl",
+		req: &saipb.CreateTunnelRequest{
+			Type:              saipb.TunnelType_TUNNEL_TYPE_VXLAN.Enum(),
+			EncapTtlMode:      saipb.TunnelTtlMode_TUNNEL_TTL_MODE_PIPE_MODEL.Enum(),
+			UnderlayInterface: proto.Uint64(10),
+		},
+		wantReq: &fwdpb.TableEntryAddRequest{
+			ContextId: &fwdpb.ContextId{Id: "foo"},
+			TableId:   &fwdpb.TableId{ObjectId: &fwdpb.ObjectId{Id: TunnelEncap}},
+			Entries: []*fwdpb.TableEntryAddRequest_Entry{{
+				EntryDesc: &fwdpb.EntryDesc{
+					Entry: &fwdpb.EntryDesc_Exact{
+						Exact: &fwdpb.ExactEntryDesc{
+							Fields: []*fwdpb.PacketFieldBytes{{
+								FieldId: &fwdpb.PacketFieldId{
+									Field: &fwdpb.PacketField{FieldNum: fwdpb.PacketFieldNum_PACKET_FIELD_NUM_TUNNEL_ID},
+								},
+								Bytes: []byte{0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0x01},
+							}},
+						},
+					},
+				},
+				Actions: []*fwdpb.ActionDesc{{
+					ActionType: fwdpb.ActionType_ACTION_TYPE_UPDATE,
+					Action: &fwdpb.ActionDesc_Update{
+						Update: &fwdpb.UpdateActionDesc{
+							Type:    fwdpb.UpdateType_UPDATE_TYPE_SET,
+							Field:   &fwdpb.PacketFieldId{Field: &fwdpb.PacketField{}},
+							FieldId: &fwdpb.PacketFieldId{Field: &fwdpb.PacketField{FieldNum: fwdpb.PacketFieldNum_PACKET_FIELD_NUM_OUTPUT_IFACE}},
+							Value:   []byte{0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0x0a},
+						},
+					},
+				}, {
+					ActionType: fwdpb.ActionType_ACTION_TYPE_UPDATE,
+					Action: &fwdpb.ActionDesc_Update{
+						Update: &fwdpb.UpdateActionDesc{
+							Type:    fwdpb.UpdateType_UPDATE_TYPE_SET,
+							Field:   &fwdpb.PacketFieldId{Field: &fwdpb.PacketField{}},
+							FieldId: &fwdpb.PacketFieldId{Field: &fwdpb.PacketField{FieldNum: fwdpb.PacketFieldNum_PACKET_FIELD_NUM_IP_HOP}},
+							Value:   []byte{defaultEncapTTL},
+						},
+					},
+				}, {
+					ActionType: fwdpb.ActionType_ACTION_TYPE_UPDATE,
+					Action: &fwdpb.ActionDesc_Update{
+						Update: &fwdpb.UpdateActionDesc{
+							Type:    fwdpb.UpdateType_UPDATE_TYPE_SET,
+							Field:   &fwdpb.PacketFieldId{Field: &fwdpb.PacketField{}},
+							FieldId: &fwdpb.PacketFieldId{Field: &fwdpb.PacketField{FieldNum: fwdpb.PacketFieldNum_PACKET_FIELD_NUM_L4_PORT_DST}},
+							Value:   []byte{0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0x12, 0xb5},
+						},
+					},
+				}},
+			}},
+		},
 	}}
 	for _, tt := range tests {
 		t.Run(tt.desc, func(t *testing.T) {