diff --git a/drivers/net/mlx5/mlx5_flow.h b/drivers/net/mlx5/mlx5_flow.h
index 9c28e50..dd7c3db 100644
--- a/drivers/net/mlx5/mlx5_flow.h
+++ b/drivers/net/mlx5/mlx5_flow.h
@@ -94,6 +94,8 @@
 #define MLX5_FLOW_ACTION_SET_MAC_DST (1u << 21)
 #define MLX5_FLOW_ACTION_VXLAN_ENCAP (1u << 22)
 #define MLX5_FLOW_ACTION_VXLAN_DECAP (1u << 23)
+#define MLX5_FLOW_ACTION_NVGRE_ENCAP (1u << 24)
+#define MLX5_FLOW_ACTION_NVGRE_DECAP (1u << 25)
 
 #define MLX5_FLOW_FATE_ACTIONS \
 	(MLX5_FLOW_ACTION_DROP | MLX5_FLOW_ACTION_QUEUE | MLX5_FLOW_ACTION_RSS)
diff --git a/drivers/net/mlx5/mlx5_flow_dv.c b/drivers/net/mlx5/mlx5_flow_dv.c
index 06ecabf..ca87ae8 100644
--- a/drivers/net/mlx5/mlx5_flow_dv.c
+++ b/drivers/net/mlx5/mlx5_flow_dv.c
@@ -43,7 +43,7 @@
  * Encap buf length, max:
  *   Eth:14/VLAN:8/IPv6:40/TCP:36/TUNNEL:20/Eth:14
  */
-#define MLX5_ENCAP_LEN 132
+#define MLX5_ENCAP_MAX_LEN 132
 
 /**
  * Validate META item.
@@ -107,7 +107,8 @@
 }
 
 /**
- * Validate the vxlan encap action.
+ * Validate the L2 encap action.
+ * Used for VXLAN and NVGRE encap actions.
  *
  * @param[in] action_flags
  *   Holds the actions detected until now.
@@ -122,14 +123,12 @@
  *   0 on success, a negative errno value otherwise and rte_errno is set.
  */
 static int
-flow_dv_validate_action_vxlan_encap(uint64_t action_flags,
-				    const struct rte_flow_action *action,
-				    const struct rte_flow_attr *attr,
-				    struct rte_flow_error *error)
+flow_dv_validate_action_l2_encap(uint64_t action_flags,
+				 const struct rte_flow_action *action,
+				 const struct rte_flow_attr *attr,
+				 struct rte_flow_error *error)
 {
-	const struct rte_flow_action_vxlan_encap *vxlan_encap = action->conf;
-
-	if (!vxlan_encap)
+	if (!(action->conf))
 		return rte_flow_error_set(error, EINVAL,
 					  RTE_FLOW_ERROR_TYPE_ACTION, action,
 					  "configuration cannot be null");
@@ -137,11 +136,14 @@
 		return rte_flow_error_set(error, EINVAL,
 					  RTE_FLOW_ERROR_TYPE_ACTION, NULL,
 					  "can't drop and encap in same flow");
-	if (action_flags & MLX5_FLOW_ACTION_VXLAN_ENCAP)
+	if (action_flags & (MLX5_FLOW_ACTION_VXLAN_ENCAP |
+			    MLX5_FLOW_ACTION_VXLAN_DECAP |
+			    MLX5_FLOW_ACTION_NVGRE_ENCAP |
+			    MLX5_FLOW_ACTION_NVGRE_DECAP))
 		return rte_flow_error_set(error, EINVAL,
 					  RTE_FLOW_ERROR_TYPE_ACTION, NULL,
-					  "can't have 2 encap actions in same"
-					  " flow");
+					  "can have a single encap or decap"
+					  " action in a flow");
 	if (attr->ingress)
 		return rte_flow_error_set(error, ENOTSUP,
 					  RTE_FLOW_ERROR_TYPE_ATTR_INGRESS,
@@ -152,7 +154,8 @@
 }
 
 /**
- * Validate the vxlan decap action.
+ * Validate the L2 decap action.
+ * Used for VXLAN and NVGRE decap actions.
  *
  * @param[in] action_flags
  *   Holds the actions detected until now.
@@ -167,7 +170,7 @@
  *   0 on success, a negative errno value otherwise and rte_errno is set.
  */
 static int
-flow_dv_validate_action_vxlan_decap(uint64_t action_flags,
+flow_dv_validate_action_l2_decap(uint64_t action_flags,
 			const struct rte_flow_action *action __rte_unused,
 			const struct rte_flow_attr *attr,
 			struct rte_flow_error *error)
@@ -176,10 +179,14 @@
 		return rte_flow_error_set(error, EINVAL,
 					  RTE_FLOW_ERROR_TYPE_ACTION, NULL,
 					  "can't drop and decap in same flow");
-	if (action_flags & MLX5_FLOW_ACTION_VXLAN_ENCAP)
+	if (action_flags & (MLX5_FLOW_ACTION_VXLAN_ENCAP |
+			    MLX5_FLOW_ACTION_VXLAN_DECAP |
+			    MLX5_FLOW_ACTION_NVGRE_ENCAP |
+			    MLX5_FLOW_ACTION_NVGRE_DECAP))
 		return rte_flow_error_set(error, EINVAL,
 					  RTE_FLOW_ERROR_TYPE_ACTION, NULL,
-					  "can't encap and decap in same flow");
+					  "can have a single encap or decap"
+					  " action in a flow");
 	if (attr->egress)
 		return rte_flow_error_set(error, ENOTSUP,
 					  RTE_FLOW_ERROR_TYPE_ATTR_EGRESS,
@@ -190,18 +197,18 @@
 }
 
 static size_t item_len[] = {
-	[RTE_FLOW_ITEM_TYPE_VOID] = 0,
-	[RTE_FLOW_ITEM_TYPE_ETH] = sizeof(struct rte_flow_item_eth),
-	[RTE_FLOW_ITEM_TYPE_VLAN] = sizeof(struct rte_flow_item_vlan),
-	[RTE_FLOW_ITEM_TYPE_IPV4] = sizeof(struct rte_flow_item_ipv4),
-	[RTE_FLOW_ITEM_TYPE_IPV6] = sizeof(struct rte_flow_item_ipv6),
-	[RTE_FLOW_ITEM_TYPE_UDP] = sizeof(struct rte_flow_item_udp),
-	[RTE_FLOW_ITEM_TYPE_TCP] = sizeof(struct rte_flow_item_tcp),
-	[RTE_FLOW_ITEM_TYPE_VXLAN] = sizeof(struct rte_flow_item_vxlan),
-	[RTE_FLOW_ITEM_TYPE_GRE] = sizeof(struct rte_flow_item_gre),
-	[RTE_FLOW_ITEM_TYPE_NVGRE] = sizeof(struct rte_flow_item_gre),
+	[RTE_FLOW_ITEM_TYPE_VOID]      = 0,
+	[RTE_FLOW_ITEM_TYPE_ETH]       = sizeof(struct rte_flow_item_eth),
+	[RTE_FLOW_ITEM_TYPE_VLAN]      = sizeof(struct rte_flow_item_vlan),
+	[RTE_FLOW_ITEM_TYPE_IPV4]      = sizeof(struct rte_flow_item_ipv4),
+	[RTE_FLOW_ITEM_TYPE_IPV6]      = sizeof(struct rte_flow_item_ipv6),
+	[RTE_FLOW_ITEM_TYPE_UDP]       = sizeof(struct rte_flow_item_udp),
+	[RTE_FLOW_ITEM_TYPE_TCP]       = sizeof(struct rte_flow_item_tcp),
+	[RTE_FLOW_ITEM_TYPE_VXLAN]     = sizeof(struct rte_flow_item_vxlan),
+	[RTE_FLOW_ITEM_TYPE_GRE]       = sizeof(struct rte_flow_item_gre),
+	[RTE_FLOW_ITEM_TYPE_NVGRE]     = sizeof(struct rte_flow_item_nvgre),
 	[RTE_FLOW_ITEM_TYPE_VXLAN_GPE] = sizeof(struct rte_flow_item_vxlan_gpe),
-	[RTE_FLOW_ITEM_TYPE_MPLS] = sizeof(struct rte_flow_item_mpls),
+	[RTE_FLOW_ITEM_TYPE_MPLS]      = sizeof(struct rte_flow_item_mpls),
 };
 
 /**
@@ -222,8 +229,9 @@
  *   0 on success, a negative errno value otherwise and rte_errno is set.
  */
 static int
-flow_dv_convert_encap(struct rte_flow_item *item, uint8_t *buf, size_t *size,
-		      struct rte_flow_error *error, uint16_t l3_type)
+flow_dv_convert_encap(const struct rte_flow_item *item, uint8_t *buf,
+		      size_t *size, struct rte_flow_error *error,
+		      uint16_t l3_type)
 {
 	struct ether_hdr *eth = NULL;
 	struct vlan_hdr *vlan = NULL;
@@ -237,9 +245,8 @@
 	assert(item);
 	*size = 0;
 	for (; item->type != RTE_FLOW_ITEM_TYPE_END; item++) {
-		/* TODO: variable length handling: raw, vxlan and nvgre. */
 		len = item_len[item->type];
-		if (len + *size > MLX5_ENCAP_LEN)
+		if (len + *size > MLX5_ENCAP_MAX_LEN)
 			return rte_flow_error_set(error, EINVAL,
 						  RTE_FLOW_ERROR_TYPE_ACTION,
 						  (void *)item->type,
@@ -361,7 +368,8 @@
 }
 
 /**
- * Convert VXLAN encap action to DV specification.
+ * Convert L2 encap action to DV specification.
+ * Used for VXLAN and NVGRE encap actions.
  *
  * @param[in] dev
  *   Pointer to rte_eth_dev structure.
@@ -374,20 +382,25 @@
  *   Pointer to action on success, NULL otherwise and rte_errno is set.
  */
 static struct ibv_flow_action *
-flow_dv_create_vxlan_encap(struct rte_eth_dev *dev,
-			   const struct rte_flow_action *action,
-			   struct rte_flow_error *error)
+flow_dv_create_l2_encap(struct rte_eth_dev *dev,
+			const struct rte_flow_action *action,
+			struct rte_flow_error *error)
 {
 	struct ibv_flow_action *encap_verb = NULL;
-	const struct rte_flow_action_vxlan_encap *encap_data;
+	const struct rte_flow_item *encap_data;
 	struct priv *priv = dev->data->dev_private;
-	uint8_t buf[MLX5_ENCAP_LEN];
+	uint8_t buf[MLX5_ENCAP_MAX_LEN];
 	size_t size = 0;
 	int convert_result;
 
-	encap_data = (const struct rte_flow_action_vxlan_encap *)action->conf;
-	convert_result = flow_dv_convert_encap(encap_data->definition,
-					       buf, &size, error, 0);
+	if (action->type == RTE_FLOW_ACTION_TYPE_VXLAN_ENCAP)
+		encap_data = ((const struct rte_flow_action_vxlan_encap *)
+						action->conf)->definition;
+	else
+		encap_data = ((const struct rte_flow_action_nvgre_encap *)
+						action->conf)->definition;
+	convert_result = flow_dv_convert_encap(encap_data, buf, &size,
+					       error, 0);
 	if (convert_result)
 		return NULL;
 	encap_verb = mlx5_glue->dv_create_flow_action_packet_reformat
@@ -396,12 +409,13 @@
 		 MLX5DV_FLOW_TABLE_TYPE_NIC_TX);
 	if (!encap_verb)
 		rte_flow_error_set(error, EINVAL, RTE_FLOW_ERROR_TYPE_ACTION,
-				   NULL, "cannot create vxlan encap action");
+				   NULL, "cannot create L2 encap action");
 	return encap_verb;
 }
 
 /**
- * Convert VXLAN decap action to DV specification.
+ * Convert L2 decap action to DV specification.
+ * Used for VXLAN and NVGRE decap actions.
  *
  * @param[in] dev
  *   Pointer to rte_eth_dev structure.
@@ -414,9 +428,9 @@
  *   Pointer to action on success, NULL otherwise and rte_errno is set.
  */
 static struct ibv_flow_action *
-flow_dv_create_vxlan_decap(struct rte_eth_dev *dev,
-			   const struct rte_flow_action *action __rte_unused,
-			   struct rte_flow_error *error)
+flow_dv_create_l2_decap(struct rte_eth_dev *dev,
+			const struct rte_flow_action *action __rte_unused,
+			struct rte_flow_error *error)
 {
 	struct ibv_flow_action *decap_verb = NULL;
 	struct priv *priv = dev->data->dev_private;
@@ -683,21 +697,29 @@
 			++actions_n;
 			break;
 		case RTE_FLOW_ACTION_TYPE_VXLAN_ENCAP:
-			ret = flow_dv_validate_action_vxlan_encap(action_flags,
-								  actions, attr,
-								  error);
+		case RTE_FLOW_ACTION_TYPE_NVGRE_ENCAP:
+			ret = flow_dv_validate_action_l2_encap(action_flags,
+							       actions, attr,
+							       error);
 			if (ret < 0)
 				return ret;
-			action_flags |= MLX5_FLOW_ACTION_VXLAN_ENCAP;
+			action_flags |= (actions->type ==
+					RTE_FLOW_ACTION_TYPE_VXLAN_ENCAP) ?
+						MLX5_FLOW_ACTION_VXLAN_ENCAP :
+						MLX5_FLOW_ACTION_NVGRE_ENCAP;
 			++actions_n;
 			break;
 		case RTE_FLOW_ACTION_TYPE_VXLAN_DECAP:
-			ret = flow_dv_validate_action_vxlan_decap(action_flags,
-								  actions, attr,
-								  error);
+		case RTE_FLOW_ACTION_TYPE_NVGRE_DECAP:
+			ret = flow_dv_validate_action_l2_decap(action_flags,
+							       actions, attr,
+							       error);
 			if (ret < 0)
 				return ret;
-			action_flags |= MLX5_FLOW_ACTION_VXLAN_DECAP;
+			action_flags |= (actions->type ==
+					RTE_FLOW_ACTION_TYPE_VXLAN_DECAP) ?
+						MLX5_FLOW_ACTION_VXLAN_DECAP :
+						MLX5_FLOW_ACTION_NVGRE_DECAP;
 			++actions_n;
 			break;
 		default:
@@ -1473,27 +1495,35 @@
 		flow->actions |= MLX5_FLOW_ACTION_RSS;
 		break;
 	case RTE_FLOW_ACTION_TYPE_VXLAN_ENCAP:
+	case RTE_FLOW_ACTION_TYPE_NVGRE_ENCAP:
 		dev_flow->dv.actions[actions_n].type =
 			MLX5DV_FLOW_ACTION_IBV_FLOW_ACTION;
 		dev_flow->dv.actions[actions_n].action =
-				flow_dv_create_vxlan_encap(dev, action, error);
+				flow_dv_create_l2_encap(dev, action, error);
 		if (!(dev_flow->dv.actions[actions_n].action))
 			return -rte_errno;
 		dev_flow->dv.encap_verb =
 			dev_flow->dv.actions[actions_n].action;
-		flow->actions |= MLX5_FLOW_ACTION_VXLAN_ENCAP;
+		flow->actions |=
+			(action->type == RTE_FLOW_ACTION_TYPE_VXLAN_ENCAP ?
+					 MLX5_FLOW_ACTION_VXLAN_ENCAP :
+					 MLX5_FLOW_ACTION_NVGRE_ENCAP);
 		actions_n++;
 		break;
 	case RTE_FLOW_ACTION_TYPE_VXLAN_DECAP:
+	case RTE_FLOW_ACTION_TYPE_NVGRE_DECAP:
 		dev_flow->dv.actions[actions_n].type =
 			MLX5DV_FLOW_ACTION_IBV_FLOW_ACTION;
 		dev_flow->dv.actions[actions_n].action =
-				flow_dv_create_vxlan_decap(dev, action, error);
+				flow_dv_create_l2_decap(dev, action, error);
 		if (!(dev_flow->dv.actions[actions_n].action))
 			return -rte_errno;
 		dev_flow->dv.decap_verb =
 			dev_flow->dv.actions[actions_n].action;
-		flow->actions |= MLX5_FLOW_ACTION_VXLAN_DECAP;
+		flow->actions |=
+			(action->type == RTE_FLOW_ACTION_TYPE_VXLAN_DECAP ?
+					 MLX5_FLOW_ACTION_VXLAN_DECAP :
+					 MLX5_FLOW_ACTION_NVGRE_DECAP);
 		actions_n++;
 		break;
 	default:
