diff --git a/plugins/network-elements/nicira-nvp/src/com/cloud/network/guru/NiciraNvpGuestNetworkGuru.java b/plugins/network-elements/nicira-nvp/src/com/cloud/network/guru/NiciraNvpGuestNetworkGuru.java
index e68f740cdcf..640d8a50715 100644
--- a/plugins/network-elements/nicira-nvp/src/com/cloud/network/guru/NiciraNvpGuestNetworkGuru.java
+++ b/plugins/network-elements/nicira-nvp/src/com/cloud/network/guru/NiciraNvpGuestNetworkGuru.java
@@ -98,7 +98,7 @@ public class NiciraNvpGuestNetworkGuru extends GuestNetworkGuru {
 
     public NiciraNvpGuestNetworkGuru() {
         super();
-        _isolationMethods = new IsolationMethod[] {IsolationMethod.STT};
+        _isolationMethods = new IsolationMethod[] {IsolationMethod.STT, IsolationMethod.VXLAN};
     }
 
     @Override
@@ -115,7 +115,7 @@ public class NiciraNvpGuestNetworkGuru extends GuestNetworkGuru {
 
     @Override
     public Network design(final NetworkOffering offering, final DeploymentPlan plan, final Network userSpecified, final Account owner) {
-        // Check of the isolation type of the related physical network is STT
+        // Check of the isolation type of the related physical network is supported
         PhysicalNetworkVO physnet = physicalNetworkDao.findById(plan.getPhysicalNetworkId());
         DataCenter dc = _dcDao.findById(plan.getDataCenterId());
         if (!canHandle(offering, dc.getNetworkType(), physnet)) {
@@ -130,7 +130,7 @@ public class NiciraNvpGuestNetworkGuru extends GuestNetworkGuru {
         }
         s_logger.debug("Nicira Nvp " + devices.get(0).getUuid() + " found on physical network " + physnet.getId());
 
-        s_logger.debug("Physical isolation type is STT, asking GuestNetworkGuru to design this network");
+        s_logger.debug("Physical isolation type is supported, asking GuestNetworkGuru to design this network");
         NetworkVO networkObject = (NetworkVO)super.design(offering, plan, userSpecified, owner);
         if (networkObject == null) {
             return null;
diff --git a/plugins/network-elements/nicira-nvp/test/com/cloud/network/guru/NiciraNvpGuestNetworkGuruTest.java b/plugins/network-elements/nicira-nvp/test/com/cloud/network/guru/NiciraNvpGuestNetworkGuruTest.java
index 881c39fa72a..36e4643401e 100644
--- a/plugins/network-elements/nicira-nvp/test/com/cloud/network/guru/NiciraNvpGuestNetworkGuruTest.java
+++ b/plugins/network-elements/nicira-nvp/test/com/cloud/network/guru/NiciraNvpGuestNetworkGuruTest.java
@@ -114,13 +114,17 @@ public class NiciraNvpGuestNetworkGuruTest {
         when(offering.getGuestType()).thenReturn(GuestType.Isolated);
 
         final PhysicalNetworkVO physnet = mock(PhysicalNetworkVO.class);
-        when(physnet.getIsolationMethods()).thenReturn(Arrays.asList(new String[] {"STT"}));
+        when(physnet.getIsolationMethods()).thenReturn(Arrays.asList(new String[] {"STT", "VXLAN"}));
         when(physnet.getId()).thenReturn(NETWORK_ID);
 
         when(nosd.areServicesSupportedByNetworkOffering(NETWORK_ID, Service.Connectivity)).thenReturn(true);
 
         assertTrue(guru.canHandle(offering, NetworkType.Advanced, physnet) == true);
 
+        // Supported: IsolationMethod == VXLAN
+        when(physnet.getIsolationMethods()).thenReturn(Arrays.asList(new String[] {"VXLAN"}));
+        assertTrue(guru.canHandle(offering, NetworkType.Advanced, physnet) == true);
+
         // Not supported TrafficType != Guest
         when(offering.getTrafficType()).thenReturn(TrafficType.Management);
         assertFalse(guru.canHandle(offering, NetworkType.Advanced, physnet) == true);
@@ -134,7 +138,7 @@ public class NiciraNvpGuestNetworkGuruTest {
         when(offering.getGuestType()).thenReturn(GuestType.Isolated);
         assertFalse(guru.canHandle(offering, NetworkType.Basic, physnet) == true);
 
-        // Not supported: IsolationMethod != STT
+        // Not supported: IsolationMethod != STT, VXLAN
         when(physnet.getIsolationMethods()).thenReturn(Arrays.asList(new String[] {"VLAN"}));
         assertFalse(guru.canHandle(offering, NetworkType.Advanced, physnet) == true);
 
@@ -144,7 +148,7 @@ public class NiciraNvpGuestNetworkGuruTest {
     public void testDesign() {
         final PhysicalNetworkVO physnet = mock(PhysicalNetworkVO.class);
         when(physnetdao.findById((Long)any())).thenReturn(physnet);
-        when(physnet.getIsolationMethods()).thenReturn(Arrays.asList(new String[] {"STT"}));
+        when(physnet.getIsolationMethods()).thenReturn(Arrays.asList(new String[] {"STT", "VXLAN"}));
         when(physnet.getId()).thenReturn(NETWORK_ID);
 
         final NiciraNvpDeviceVO device = mock(NiciraNvpDeviceVO.class);
@@ -171,7 +175,7 @@ public class NiciraNvpGuestNetworkGuruTest {
     public void testDesignNoElementOnPhysicalNetwork() {
         final PhysicalNetworkVO physnet = mock(PhysicalNetworkVO.class);
         when(physnetdao.findById((Long)any())).thenReturn(physnet);
-        when(physnet.getIsolationMethods()).thenReturn(Arrays.asList(new String[] {"STT"}));
+        when(physnet.getIsolationMethods()).thenReturn(Arrays.asList(new String[] {"STT", "VXLAN"}));
         when(physnet.getId()).thenReturn(NETWORK_ID);
 
         mock(NiciraNvpDeviceVO.class);
@@ -217,7 +221,7 @@ public class NiciraNvpGuestNetworkGuruTest {
     public void testDesignNoConnectivityInOffering() {
         final PhysicalNetworkVO physnet = mock(PhysicalNetworkVO.class);
         when(physnetdao.findById((Long)any())).thenReturn(physnet);
-        when(physnet.getIsolationMethods()).thenReturn(Arrays.asList(new String[] {"STT"}));
+        when(physnet.getIsolationMethods()).thenReturn(Arrays.asList(new String[] {"STT", "VXLAN"}));
         when(physnet.getId()).thenReturn(NETWORK_ID);
 
         final NiciraNvpDeviceVO device = mock(NiciraNvpDeviceVO.class);
@@ -243,7 +247,7 @@ public class NiciraNvpGuestNetworkGuruTest {
     public void testImplement() throws InsufficientVirtualNetworkCapacityException {
         final PhysicalNetworkVO physnet = mock(PhysicalNetworkVO.class);
         when(physnetdao.findById((Long)any())).thenReturn(physnet);
-        when(physnet.getIsolationMethods()).thenReturn(Arrays.asList(new String[] {"STT"}));
+        when(physnet.getIsolationMethods()).thenReturn(Arrays.asList(new String[] {"STT", "VXLAN"}));
         when(physnet.getId()).thenReturn(NETWORK_ID);
 
         final NiciraNvpDeviceVO device = mock(NiciraNvpDeviceVO.class);
@@ -412,7 +416,7 @@ public class NiciraNvpGuestNetworkGuruTest {
     public void testShutdown() throws InsufficientVirtualNetworkCapacityException, URISyntaxException {
         final PhysicalNetworkVO physnet = mock(PhysicalNetworkVO.class);
         when(physnetdao.findById((Long)any())).thenReturn(physnet);
-        when(physnet.getIsolationMethods()).thenReturn(Arrays.asList(new String[] {"STT"}));
+        when(physnet.getIsolationMethods()).thenReturn(Arrays.asList(new String[] {"STT", "VXLAN"}));
         when(physnet.getId()).thenReturn(NETWORK_ID);
 
         final NiciraNvpDeviceVO device = mock(NiciraNvpDeviceVO.class);