diff --git a/server/src/com/cloud/configuration/ConfigurationManagerImpl.java b/server/src/com/cloud/configuration/ConfigurationManagerImpl.java
index 863d71b843b..2d4539c7282 100755
--- a/server/src/com/cloud/configuration/ConfigurationManagerImpl.java
+++ b/server/src/com/cloud/configuration/ConfigurationManagerImpl.java
@@ -36,6 +36,8 @@ import javax.ejb.Local;
 import javax.inject.Inject;
 import javax.naming.ConfigurationException;
 
+import org.apache.log4j.Logger;
+
 import org.apache.cloudstack.acl.SecurityChecker;
 import org.apache.cloudstack.affinity.AffinityGroup;
 import org.apache.cloudstack.affinity.AffinityGroupService;
@@ -83,7 +85,6 @@ import org.apache.cloudstack.region.dao.RegionDao;
 import org.apache.cloudstack.storage.datastore.db.PrimaryDataStoreDao;
 import org.apache.cloudstack.storage.datastore.db.StoragePoolDetailsDao;
 import org.apache.cloudstack.storage.datastore.db.StoragePoolVO;
-import org.apache.log4j.Logger;
 
 import com.cloud.alert.AlertManager;
 import com.cloud.api.ApiDBUtils;
@@ -2623,7 +2624,9 @@ public class ConfigurationManagerImpl extends ManagerBase implements Configurati
                     networkId = network.getId();
                     zoneId = network.getDataCenterId();
                 }
-            } else if (network.getGuestType() == null || network.getGuestType() == Network.GuestType.Isolated) {
+            } else if (network.getGuestType() == null ||
+                    (network.getGuestType() == Network.GuestType.Isolated
+                    && _ntwkOffServiceMapDao.areServicesSupportedByNetworkOffering(network.getNetworkOfferingId(), Service.SourceNat))) {
                 throw new InvalidParameterValueException("Can't create direct vlan for network id=" + networkId + " with type: " + network.getGuestType());
             }
         }