diff --git a/src/vnsw/agent/oper/agent_path.cc b/src/vnsw/agent/oper/agent_path.cc
index 6492a5c70f9..6ba188a9389 100644
--- a/src/vnsw/agent/oper/agent_path.cc
+++ b/src/vnsw/agent/oper/agent_path.cc
@@ -408,9 +408,16 @@ bool LocalVmRoute::AddChangePath(Agent *agent, AgentPath *path) {
         ret = true;
     }
 
-    //If there is a transition in path from active-active to
-    //ative-backup or vice-versa copy over entire path preference structure
-    if (path->path_preference().ecmp() != path_preference_.ecmp()) {
+    //Priority and sequence no of path are updated from path
+    //preference state machine
+    //Path preference value enqueued here would be copied
+    //only if
+    //1> ecmp field is set to true, meaning path would be
+    //   active-active
+    //2> static preference is set, meaning external entity
+    //   would specify the preference of this path(ex LBaaS)
+    //3> Change in priority when static preference is set
+    if (path->path_preference().ConfigChanged(path_preference_)) {
         path->set_path_preference(path_preference_);
         ret = true;
     }
diff --git a/src/vnsw/agent/oper/agent_path.h b/src/vnsw/agent/oper/agent_path.h
index 721d82ad0e0..59b0817d09e 100644
--- a/src/vnsw/agent/oper/agent_path.h
+++ b/src/vnsw/agent/oper/agent_path.h
@@ -75,6 +75,23 @@ class PathPreference {
         }
         return false;
     }
+
+    //Check if any configuration values have changed
+    //ecmp flag and static preference are updated from
+    //configuration, if static preference flag is set,
+    //then preference also would be picked from configuration
+    bool ConfigChanged(PathPreference &rhs) const {
+        bool ret = false;
+        if (ecmp_ != rhs.ecmp_) {
+            ret = true;
+        } else if (static_preference_ != rhs.static_preference_) {
+            ret = true;
+        } else if (static_preference_ && preference_ != rhs.preference_) {
+            ret = true;
+        }
+        return ret;
+    }
+
 private:
     uint32_t sequence_;
     Preference preference_;
diff --git a/src/vnsw/agent/oper/test/test_aap.cc b/src/vnsw/agent/oper/test/test_aap.cc
index 710816dd92e..6a50903c5fb 100644
--- a/src/vnsw/agent/oper/test/test_aap.cc
+++ b/src/vnsw/agent/oper/test/test_aap.cc
@@ -84,6 +84,21 @@ class TestAap : public ::testing::Test {
         client->WaitForIdle();
     }
 
+    void AddStaticPreference(std::string intf_name, int intf_id,
+                             uint32_t value) {
+        std::ostringstream buf;
+        buf << "<virtual-machine-interface-properties>";
+        buf << "<local-preference>";
+        buf << value;
+        buf << "</local-preference>";
+        buf << "</virtual-machine-interface-properties>";
+        char cbuf[10000];
+        strcpy(cbuf, buf.str().c_str());
+        AddNode("virtual-machine-interface", intf_name.c_str(),
+                intf_id, cbuf);
+        client->WaitForIdle();
+    }
+
     virtual void SetUp() {
         CreateVmportEnv(input, 1);
         client->WaitForIdle();
@@ -467,6 +482,57 @@ TEST_F(TestAap, StateMachine_9) {
    EXPECT_TRUE(path->path_preference().wait_for_traffic() == false);
 }
 
+//Verify that static preference is populated
+TEST_F(TestAap, StateMachine_10) {
+    AddStaticPreference("intf1", 1, 200);
+    Ip4Address ip = Ip4Address::from_string("1.1.1.1");
+    EXPECT_TRUE(RouteFind("vrf1", ip, 32));
+
+    VmInterface *vm_intf = VmInterfaceGet(1);
+    InetUnicastRouteEntry *rt =
+        RouteGet("vrf1", ip, 32);
+    const AgentPath *path = rt->GetActivePath();
+    EXPECT_TRUE(path->path_preference().sequence() == 0);
+    EXPECT_TRUE(path->path_preference().preference() == PathPreference::HIGH);
+    EXPECT_TRUE(path->path_preference().ecmp() == false);
+    EXPECT_TRUE(path->path_preference().wait_for_traffic() == true);
+    EXPECT_TRUE(path->path_preference().static_preference() == true);
+}
+
+//Verify that preference value change is reflected with
+//static preference change
+TEST_F(TestAap, StaticMachine_11) {
+    AddStaticPreference("intf1", 1, 100);
+    Ip4Address ip = Ip4Address::from_string("1.1.1.1");
+    EXPECT_TRUE(RouteFind("vrf1", ip, 32));
+
+    VmInterface *vm_intf = VmInterfaceGet(1);
+    InetUnicastRouteEntry *rt =
+        RouteGet("vrf1", ip, 32);
+    const AgentPath *path = rt->GetActivePath();
+    EXPECT_TRUE(path->path_preference().sequence() == 0);
+    EXPECT_TRUE(path->path_preference().preference() == PathPreference::LOW);
+    EXPECT_TRUE(path->path_preference().ecmp() == false);
+    EXPECT_TRUE(path->path_preference().wait_for_traffic() == true);
+    EXPECT_TRUE(path->path_preference().static_preference() == true);
+
+    AddStaticPreference("intf1", 1, 200);
+    EXPECT_TRUE(path->path_preference().sequence() == 0);
+    EXPECT_TRUE(path->path_preference().preference() == PathPreference::HIGH);
+    EXPECT_TRUE(path->path_preference().ecmp() == false);
+    EXPECT_TRUE(path->path_preference().wait_for_traffic() == true);
+    EXPECT_TRUE(path->path_preference().static_preference() == true);
+
+    AddStaticPreference("intf1", 1, 100);
+    EXPECT_TRUE(path->path_preference().preference() == PathPreference::LOW);
+
+    //Delete static interface property
+    AddNode("virtual-machine-interface", "intf1",
+            1, "");
+    client->WaitForIdle();
+    EXPECT_TRUE(path->path_preference().static_preference() == false);
+}
+
 int main(int argc, char *argv[]) {
     GETUSERARGS();
     client = TestInit(init_file, ksync_init);
diff --git a/src/vnsw/agent/oper/vm_interface.cc b/src/vnsw/agent/oper/vm_interface.cc
index 284c7e6f152..0b2367d3b0f 100644
--- a/src/vnsw/agent/oper/vm_interface.cc
+++ b/src/vnsw/agent/oper/vm_interface.cc
@@ -2066,20 +2066,6 @@ void VmInterface::AddRoute(const std::string &vrf_name, const IpAddress &addr,
                                                  dest_vn, label_,
                                                  sg_id_list, false,
                                                  path_preference, gw_ip);
-
-    InetUnicastRouteKey *rt_key =
-                new InetUnicastRouteKey(peer_.get(), vrf_name, addr, plen);
-    rt_key->sub_op_ = AgentKey::RESYNC;
-
-    DBRequest req(DBRequest::DB_ENTRY_ADD_CHANGE);
-    req.key.reset(rt_key);
-    req.data.reset(new PathPreferenceData(path_preference));
-    AgentRouteTable *table =
-    Agent::GetInstance()->vrf_table()->GetInet4UnicastRouteTable(vrf_name);
-    if (table) {
-        table->Process(req);
-    }
-
     return;
 }