diff --git a/doc/guides/sample_app_ug/ipsec_secgw.rst b/doc/guides/sample_app_ug/ipsec_secgw.rst
index 282926924f..ec0085d8c4 100644
--- a/doc/guides/sample_app_ug/ipsec_secgw.rst
+++ b/doc/guides/sample_app_ug/ipsec_secgw.rst
@@ -717,7 +717,8 @@ where each options means:
  ``<udp-encap>``
 
  * Option to enable IPsec UDP encapsulation for NAT Traversal.
-   Only *lookaside-protocol-offload* mode is supported at the moment.
+   Only *lookaside-protocol-offload* and *inline-crypto-offload* modes are
+   supported at the moment.
 
  * Optional: Yes, it is disabled by default
 
diff --git a/examples/ipsec-secgw/ipsec.c b/examples/ipsec-secgw/ipsec.c
index b6b7bddca8..90d9e61e5b 100644
--- a/examples/ipsec-secgw/ipsec.c
+++ b/examples/ipsec-secgw/ipsec.c
@@ -221,6 +221,12 @@ create_inline_session(struct socket_ctx *skt_ctx, struct ipsec_sa *sa,
 		}
 	}
 
+	if (sa->udp_encap) {
+		sess_conf.ipsec.options.udp_encap = 1;
+		sess_conf.ipsec.udp.sport = htons(sa->udp.sport);
+		sess_conf.ipsec.udp.dport = htons(sa->udp.dport);
+	}
+
 	RTE_LOG_DP(DEBUG, IPSEC, "Create session for SA spi %u on port %u\n",
 		sa->spi, sa->portid);
 
@@ -289,12 +295,31 @@ create_inline_session(struct socket_ctx *skt_ctx, struct ipsec_sa *sa,
 			sa->ipv4_spec.hdr.src_addr = sa->src.ip.ip4;
 		}
 
-		sa->pattern[2].type = RTE_FLOW_ITEM_TYPE_ESP;
-		sa->pattern[2].spec = &sa->esp_spec;
-		sa->pattern[2].mask = &rte_flow_item_esp_mask;
 		sa->esp_spec.hdr.spi = rte_cpu_to_be_32(sa->spi);
 
-		sa->pattern[3].type = RTE_FLOW_ITEM_TYPE_END;
+		if (sa->udp_encap) {
+
+			sa->udp_spec.hdr.dst_port =
+					rte_cpu_to_be_16(sa->udp.dport);
+			sa->udp_spec.hdr.src_port =
+					rte_cpu_to_be_16(sa->udp.sport);
+
+			sa->pattern[2].mask = &rte_flow_item_udp_mask;
+			sa->pattern[2].type = RTE_FLOW_ITEM_TYPE_UDP;
+			sa->pattern[2].spec = &sa->udp_spec;
+
+			sa->pattern[3].type = RTE_FLOW_ITEM_TYPE_ESP;
+			sa->pattern[3].spec = &sa->esp_spec;
+			sa->pattern[3].mask = &rte_flow_item_esp_mask;
+
+			sa->pattern[4].type = RTE_FLOW_ITEM_TYPE_END;
+		} else {
+			sa->pattern[2].type = RTE_FLOW_ITEM_TYPE_ESP;
+			sa->pattern[2].spec = &sa->esp_spec;
+			sa->pattern[2].mask = &rte_flow_item_esp_mask;
+
+			sa->pattern[3].type = RTE_FLOW_ITEM_TYPE_END;
+		}
 
 		sa->action[0].type = RTE_FLOW_ACTION_TYPE_SECURITY;
 		sa->action[0].conf = ips->security.ses;
diff --git a/examples/ipsec-secgw/ipsec.h b/examples/ipsec-secgw/ipsec.h
index 8405c48171..06bb11d5d5 100644
--- a/examples/ipsec-secgw/ipsec.h
+++ b/examples/ipsec-secgw/ipsec.h
@@ -125,6 +125,10 @@ struct ipsec_sa {
 #define IP6_TRANSPORT (1 << 4)
 	struct ip_addr src;
 	struct ip_addr dst;
+	struct {
+		uint16_t sport;
+		uint16_t dport;
+	} udp;
 	uint8_t cipher_key[MAX_KEY_SIZE];
 	uint16_t cipher_key_len;
 	uint8_t auth_key[MAX_KEY_SIZE];
@@ -140,7 +144,7 @@ struct ipsec_sa {
 	uint8_t fdir_qid;
 	uint8_t fdir_flag;
 
-#define MAX_RTE_FLOW_PATTERN (4)
+#define MAX_RTE_FLOW_PATTERN (5)
 #define MAX_RTE_FLOW_ACTIONS (3)
 	struct rte_flow_item pattern[MAX_RTE_FLOW_PATTERN];
 	struct rte_flow_action action[MAX_RTE_FLOW_ACTIONS];
@@ -149,6 +153,7 @@ struct ipsec_sa {
 		struct rte_flow_item_ipv4 ipv4_spec;
 		struct rte_flow_item_ipv6 ipv6_spec;
 	};
+	struct rte_flow_item_udp udp_spec;
 	struct rte_flow_item_esp esp_spec;
 	struct rte_flow *flow;
 	struct rte_security_session_conf sess_conf;
diff --git a/examples/ipsec-secgw/sa.c b/examples/ipsec-secgw/sa.c
index 88dd30464f..daebc1f09b 100644
--- a/examples/ipsec-secgw/sa.c
+++ b/examples/ipsec-secgw/sa.c
@@ -17,6 +17,7 @@
 #include <rte_byteorder.h>
 #include <rte_errno.h>
 #include <rte_ip.h>
+#include <rte_udp.h>
 #include <rte_random.h>
 #include <rte_ethdev.h>
 #include <rte_malloc.h>
@@ -771,6 +772,11 @@ parse_sa_tokens(char **tokens, uint32_t n_tokens,
 				app_sa_prm.udp_encap = 1;
 				udp_encap_p = 1;
 				break;
+			case RTE_SECURITY_ACTION_TYPE_INLINE_CRYPTO:
+				rule->udp_encap = 1;
+				rule->udp.sport = 0;
+				rule->udp.dport = 4500;
+				break;
 			default:
 				APP_CHECK(0, status,
 					"UDP encapsulation not supported for "
@@ -858,6 +864,8 @@ print_one_sa_rule(const struct ipsec_sa *sa, int inbound)
 	}
 
 	printf("mode:");
+	if (sa->udp_encap)
+		printf("UDP encapsulated ");
 
 	switch (WITHOUT_TRANSPORT_VERSION(sa->flags)) {
 	case IP4_TUNNEL:
@@ -1311,6 +1319,7 @@ fill_ipsec_sa_prm(struct rte_ipsec_sa_prm *prm, const struct ipsec_sa *ss,
 	prm->ipsec_xform.mode = (IS_TRANSPORT(ss->flags)) ?
 		RTE_SECURITY_IPSEC_SA_MODE_TRANSPORT :
 		RTE_SECURITY_IPSEC_SA_MODE_TUNNEL;
+	prm->ipsec_xform.options.udp_encap = ss->udp_encap;
 	prm->ipsec_xform.options.ecn = 1;
 	prm->ipsec_xform.options.copy_dscp = 1;
 
