diff --git a/drivers/net/bnxt/bnxt_rxr.c b/drivers/net/bnxt/bnxt_rxr.c
index 44303f3b0..54a2cf5fd 100644
--- a/drivers/net/bnxt/bnxt_rxr.c
+++ b/drivers/net/bnxt/bnxt_rxr.c
@@ -362,6 +362,7 @@ static int bnxt_rx_pkt(struct rte_mbuf **rx_pkt,
 	int rc = 0;
 	uint8_t agg_buf = 0;
 	uint16_t cmp_type;
+	uint32_t flags2_f = 0;
 
 	rxcmp = (struct rx_pkt_cmpl *)
 	    &cpr->cp_desc_ring[cp_cons];
@@ -440,19 +441,41 @@ static int bnxt_rx_pkt(struct rte_mbuf **rx_pkt,
 		mbuf->ol_flags |= PKT_RX_VLAN | PKT_RX_VLAN_STRIPPED;
 	}
 
-	if (likely(RX_CMP_IP_CS_OK(rxcmp1)))
-		mbuf->ol_flags |= PKT_RX_IP_CKSUM_GOOD;
-	else if (likely(RX_CMP_IP_CS_UNKNOWN(rxcmp1)))
-		mbuf->ol_flags |= PKT_RX_IP_CKSUM_UNKNOWN;
-	else
+	flags2_f = flags2_0xf(rxcmp1);
+	/* IP Checksum */
+	if (unlikely(((IS_IP_NONTUNNEL_PKT(flags2_f)) &&
+		      (RX_CMP_IP_CS_ERROR(rxcmp1))) ||
+		     (IS_IP_TUNNEL_PKT(flags2_f) &&
+		      (RX_CMP_IP_OUTER_CS_ERROR(rxcmp1))))) {
 		mbuf->ol_flags |= PKT_RX_IP_CKSUM_BAD;
+	} else if (unlikely(RX_CMP_IP_CS_UNKNOWN(rxcmp1))) {
+		mbuf->ol_flags |= PKT_RX_IP_CKSUM_UNKNOWN;
+	} else {
+		mbuf->ol_flags |= PKT_RX_IP_CKSUM_GOOD;
+	}
 
-	if (likely(RX_CMP_L4_CS_OK(rxcmp1)))
-		mbuf->ol_flags |= PKT_RX_L4_CKSUM_GOOD;
-	else if (likely(RX_CMP_L4_CS_UNKNOWN(rxcmp1)))
+	/* L4 Checksum */
+	if (likely(IS_L4_NONTUNNEL_PKT(flags2_f))) {
+		if (unlikely(RX_CMP_L4_INNER_CS_ERR2(rxcmp1)))
+			mbuf->ol_flags |= PKT_RX_L4_CKSUM_BAD;
+		else
+			mbuf->ol_flags |= PKT_RX_L4_CKSUM_GOOD;
+	} else if (IS_L4_TUNNEL_PKT(flags2_f)) {
+		if (unlikely(RX_CMP_L4_INNER_CS_ERR2(rxcmp1)))
+			mbuf->ol_flags |= PKT_RX_L4_CKSUM_BAD;
+		else
+			mbuf->ol_flags |= PKT_RX_L4_CKSUM_GOOD;
+		if (unlikely(RX_CMP_L4_OUTER_CS_ERR2(rxcmp1))) {
+			mbuf->ol_flags |= PKT_RX_OUTER_L4_CKSUM_BAD;
+		} else if (unlikely(IS_L4_TUNNEL_PKT_ONLY_INNER_L4_CS
+				    (flags2_f))) {
+			mbuf->ol_flags |= PKT_RX_OUTER_L4_CKSUM_UNKNOWN;
+		} else {
+			mbuf->ol_flags |= PKT_RX_OUTER_L4_CKSUM_GOOD;
+		}
+	} else if (unlikely(RX_CMP_L4_CS_UNKNOWN(rxcmp1))) {
 		mbuf->ol_flags |= PKT_RX_L4_CKSUM_UNKNOWN;
-	else
-		mbuf->ol_flags |= PKT_RX_L4_CKSUM_BAD;
+	}
 
 	mbuf->packet_type = bnxt_parse_pkt_type(rxcmp, rxcmp1);
 
diff --git a/drivers/net/bnxt/bnxt_rxr.h b/drivers/net/bnxt/bnxt_rxr.h
index 6523b94c6..6a80c37c8 100644
--- a/drivers/net/bnxt/bnxt_rxr.h
+++ b/drivers/net/bnxt/bnxt_rxr.h
@@ -24,36 +24,116 @@
 #define BNXT_TPA_OUTER_L3_OFF(hdr_info)	\
 	((hdr_info) & 0x1ff)
 
-#define RX_CMP_L4_CS_BITS	\
-	rte_cpu_to_le_32(RX_PKT_CMPL_FLAGS2_L4_CS_CALC | \
-			 RX_PKT_CMPL_FLAGS2_T_L4_CS_CALC)
-
-#define RX_CMP_L4_CS_ERR_BITS	\
-	rte_cpu_to_le_32(RX_PKT_CMPL_ERRORS_L4_CS_ERROR | \
-			 RX_PKT_CMPL_ERRORS_T_L4_CS_ERROR)
+#define flags2_0xf(rxcmp1)	\
+	(((rxcmp1)->flags2) & 0xf)
 
-#define RX_CMP_L4_CS_OK(rxcmp1)						\
-	    (((rxcmp1)->flags2 & RX_CMP_L4_CS_BITS) &&		\
-	     !((rxcmp1)->errors_v2 & RX_CMP_L4_CS_ERR_BITS))
+/* IP non tunnel can be with or without L4-
+ * Ether / (vlan) / IP|IP6 / UDP|TCP|SCTP Or
+ * Ether / (vlan) / outer IP|IP6 / ICMP
+ * we use '==' instead of '&' because tunnel pkts have all 4 fields set.
+ */
+#define IS_IP_NONTUNNEL_PKT(flags2_f)	\
+	(	\
+	 ((flags2_f) == \
+	  (rte_cpu_to_le_32(RX_PKT_CMPL_FLAGS2_IP_CS_CALC))) ||	\
+	 ((flags2_f) ==	\
+	  (rte_cpu_to_le_32(RX_PKT_CMPL_FLAGS2_IP_CS_CALC | \
+			    RX_PKT_CMPL_FLAGS2_L4_CS_CALC))) \
+	)
+
+/* IP Tunnel pkt must have atleast tunnel-IP-calc set.
+ * again tunnel ie outer L4 is optional bcoz of
+ * Ether / (vlan) / outer IP|IP6 / GRE / Ether / IP|IP6 / UDP|TCP|SCTP
+ * Ether / (vlan) / outer IP|IP6 / outer UDP / VxLAN / Ether / IP|IP6 /
+ *           UDP|TCP|SCTP
+ * Ether / (vlan) / outer IP|IP6 / outer UDP / VXLAN-GPE / Ether / IP|IP6 /
+ *           UDP|TCP|SCTP
+ * Ether / (vlan) / outer IP|IP6 / outer UDP / VXLAN-GPE / IP|IP6 /
+ *           UDP|TCP|SCTP
+ * Ether / (vlan) / outer IP|IP6 / GRE / IP|IP6 / UDP|TCP|SCTP
+ * Ether / (vlan) / outer IP|IP6 / IP|IP6 / UDP|TCP|SCTP
+ * also inner L3 chksum error is not taken into consideration by DPDK.
+ */
+#define IS_IP_TUNNEL_PKT(flags2_f)	\
+	((flags2_f) & rte_cpu_to_le_32(RX_PKT_CMPL_FLAGS2_T_IP_CS_CALC))
 
-#define RX_CMP_L4_CS_UNKNOWN(rxcmp1)					\
-	    !((rxcmp1)->flags2 & RX_CMP_L4_CS_BITS)
+/* RX_PKT_CMPL_ERRORS_IP_CS_ERROR only for Non-tunnel pkts.
+ * For tunnel pkts RX_PKT_CMPL_ERRORS_IP_CS_ERROR is not accounted and treated
+ * as good csum pkt.
+ */
+#define RX_CMP_IP_CS_ERROR(rxcmp1)	\
+	((rxcmp1)->errors_v2 &	\
+	 rte_cpu_to_le_32(RX_PKT_CMPL_ERRORS_IP_CS_ERROR))
 
-#define RX_CMP_IP_CS_ERR_BITS	\
-	rte_cpu_to_le_32(RX_PKT_CMPL_ERRORS_IP_CS_ERROR | \
-			 RX_PKT_CMPL_ERRORS_T_IP_CS_ERROR)
+#define RX_CMP_IP_OUTER_CS_ERROR(rxcmp1)	\
+	((rxcmp1)->errors_v2 &	\
+	 rte_cpu_to_le_32(RX_PKT_CMPL_ERRORS_T_IP_CS_ERROR))
 
 #define RX_CMP_IP_CS_BITS	\
 	rte_cpu_to_le_32(RX_PKT_CMPL_FLAGS2_IP_CS_CALC | \
 			 RX_PKT_CMPL_FLAGS2_T_IP_CS_CALC)
 
-#define RX_CMP_IP_CS_OK(rxcmp1)						\
-		(((rxcmp1)->flags2 & RX_CMP_IP_CS_BITS) &&	\
-		!((rxcmp1)->errors_v2 & RX_CMP_IP_CS_ERR_BITS))
-
-#define RX_CMP_IP_CS_UNKNOWN(rxcmp1)					\
+#define RX_CMP_IP_CS_UNKNOWN(rxcmp1)	\
 		!((rxcmp1)->flags2 & RX_CMP_IP_CS_BITS)
 
+/* L4 non tunnel pkt-
+ * Ether / (vlan) / IP6 / UDP|TCP|SCTP
+ */
+#define IS_L4_NONTUNNEL_PKT(flags2_f)	\
+	( \
+	  ((flags2_f) == \
+	   (rte_cpu_to_le_32(RX_PKT_CMPL_FLAGS2_IP_CS_CALC |	\
+			     RX_PKT_CMPL_FLAGS2_L4_CS_CALC))))
+
+/* L4 tunnel pkt-
+ * Outer L4 is not mandatory. Eg: GRE-
+ * Ether / (vlan) / outer IP|IP6 / GRE / Ether / IP|IP6 / UDP|TCP|SCTP
+ * Ether / (vlan) / outer IP|IP6 / outer UDP / VxLAN / Ether / IP|IP6 /
+ *           UDP|TCP|SCTP
+ */
+#define	IS_L4_TUNNEL_PKT_INNER_OUTER_L4_CS(flags2_f)	\
+	 ((flags2_f) == \
+	  (rte_cpu_to_le_32(RX_PKT_CMPL_FLAGS2_IP_CS_CALC |	\
+			    RX_PKT_CMPL_FLAGS2_L4_CS_CALC |	\
+			    RX_PKT_CMPL_FLAGS2_T_IP_CS_CALC |	\
+			    RX_PKT_CMPL_FLAGS2_T_L4_CS_CALC)))
+
+#define IS_L4_TUNNEL_PKT_ONLY_INNER_L4_CS(flags2_f)	\
+	 ((flags2_f) == \
+	  (rte_cpu_to_le_32(RX_PKT_CMPL_FLAGS2_IP_CS_CALC |	\
+			    RX_PKT_CMPL_FLAGS2_L4_CS_CALC |	\
+			    RX_PKT_CMPL_FLAGS2_T_IP_CS_CALC)))
+
+#define IS_L4_TUNNEL_PKT(flags2_f)	\
+	(	\
+		IS_L4_TUNNEL_PKT_INNER_OUTER_L4_CS(flags2_f) || \
+		IS_L4_TUNNEL_PKT_ONLY_INNER_L4_CS(flags2_f)	\
+	)
+
+#define RX_CMP_L4_CS_BITS	\
+	rte_cpu_to_le_32(RX_PKT_CMPL_FLAGS2_L4_CS_CALC)
+
+#define RX_CMP_L4_CS_UNKNOWN(rxcmp1)					\
+	    !((rxcmp1)->flags2 & RX_CMP_L4_CS_BITS)
+
+#define RX_CMP_T_L4_CS_BITS	\
+	rte_cpu_to_le_32(RX_PKT_CMPL_FLAGS2_T_L4_CS_CALC)
+
+#define RX_CMP_T_L4_CS_UNKNOWN(rxcmp1)					\
+	    !((rxcmp1)->flags2 & RX_CMP_T_L4_CS_BITS)
+
+/* Outer L4 chksum error
+ */
+#define RX_CMP_L4_OUTER_CS_ERR2(rxcmp1)	\
+	 ((rxcmp1)->errors_v2 & \
+	  rte_cpu_to_le_32(RX_PKT_CMPL_ERRORS_T_L4_CS_ERROR))
+
+/* Inner L4 chksum error
+ */
+#define RX_CMP_L4_INNER_CS_ERR2(rxcmp1)	\
+	 ((rxcmp1)->errors_v2 & \
+	  rte_cpu_to_le_32(RX_PKT_CMPL_ERRORS_L4_CS_ERROR))
+
 #define BNXT_RX_POST_THRESH	32
 
 enum pkt_hash_types {
