diff --git a/webroot/common/api/jsonDiff.helper.js b/webroot/common/api/jsonDiff.helper.js
index 41335e38b..7b10f061a 100644
--- a/webroot/common/api/jsonDiff.helper.js
+++ b/webroot/common/api/jsonDiff.helper.js
@@ -65,7 +65,7 @@ var configJsonModifyObj = {
     },
     'global-vrouter-config': {
         'isConfig': true,
-        'optFields': ['vxlan_network_identifier_mode', 'encapsulation_priorities', 'linklocal_services'],
+        'optFields': ['forwarding_mode', 'vxlan_network_identifier_mode', 'encapsulation_priorities', 'linklocal_services'],
         'mandateFields': ['fq_name', 'uuid', 'display_name']
     },
     'physical-topology': {
diff --git a/webroot/config/bgp/ui/views/bgp_config.view b/webroot/config/bgp/ui/views/bgp_config.view
index 3255f6f6c..c9be8ad21 100644
--- a/webroot/config/bgp/ui/views/bgp_config.view
+++ b/webroot/config/bgp/ui/views/bgp_config.view
@@ -93,7 +93,6 @@
                           <div class="row-fluid">
                           <input id="txtasn" class="span10"
                               type="text" name="txtasn" value=""
-                              onchange="populateMultiselect('chkexternal');" 
                               placeholder="1 - 65535">
                           </input>                           
                           </div>
diff --git a/webroot/config/forwardingoptions/ui/js/global_options_config.js b/webroot/config/forwardingoptions/ui/js/global_options_config.js
index 34b5332b1..2f2814ead 100644
--- a/webroot/config/forwardingoptions/ui/js/global_options_config.js
+++ b/webroot/config/forwardingoptions/ui/js/global_options_config.js
@@ -124,8 +124,27 @@ function initComponents() {
         footer : false
     });
 
+    var forwardingModeLabels = ["Default","L2 and L3","L2 Only", "L3 Only"];
+    var forwardingModeValues = ["default", "l2_l3", "l2", "l3"];
+    var forwardingModeData = [];
+
+    for (var i = 0; i < forwardingModeLabels.length; i++) {
+        var fwdModeData = {
+            text: forwardingModeLabels[i],
+            value: forwardingModeValues[i]
+        };
+        forwardingModeData.push(fwdModeData);
+    }
+
     gridGlobalConfig = $("#gridGlobalConfig").data('contrailGrid');
-    
+    $('#ddForwardingMode').contrailDropdown({
+        dataTextField:"text",
+        dataValueField:"value"
+    });
+    $('#ddForwardingMode')
+        .data('contrailDropdown')
+        .setData(forwardingModeData);
+
 	confirmMainSave = $("#confirmMainSave");
 	confirmMainSave.modal({backdrop:'static', keyboard: false, show:false});
     windowEditGblConfig = $('#windowEditGblConfig');
@@ -262,6 +281,7 @@ function initActions() {
         		globalVRouterConfig["global-vrouter-config"]["encapsulation_priorities"]["encapsulation"][i] = priorities[i];
         	}
         }
+        var forwarding_mode = $("#ddForwardingMode").data("contrailDropdown").value();
         if(null === configObj["global-vrouter-config"] ||
         	typeof configObj["global-vrouter-config"] === "undefined" ||
         	null === configObj["global-vrouter-config"]["uuid"] ||
@@ -274,11 +294,32 @@ function initActions() {
             var gvrId = configObj["global-vrouter-config"]["uuid"];
             /*doAjaxCall("/api/tenants/config/global-vrouter-config/" + gvrId + "/forwarding-options",
             	"PUT", JSON.stringify(globalVRouterConfig), null, "handleCommitFailure");*/
+
+            if(forwarding_mode === "default") {
+                //if tag 'forwarding_mode' is missing, just like in case of an upgrade,
+                //dont add 'forwarding_mode' since user is still going with 'default'.
+                //if(null !== configObj["global-vrouter-config"]["forwarding_mode"] &&
+                //    typeof configObj["global-vrouter-config"]["forwarding_mode"] !== "undefined") {
+                    //Adding 'forwarde_mode' tag if it is already there.
+                    globalVRouterConfig["global-vrouter-config"]["forwarding_mode"] = null;
+                //  }
+            } else {
+                //Add forwarding_mode only for l2_l3, l2, l3.
+                globalVRouterConfig["global-vrouter-config"]["forwarding_mode"] = forwarding_mode;
+            }
             fwdOptnURL = "/api/tenants/config/global-vrouter-config/" + gvrId + "/forwarding-options";
             fwdOptnActionType = "PUT";
         }
+        var forwardingModeChanged = false;
+        if(orig_forwarding_mode !== forwarding_mode) {
+            forwardingModeChanged = true;
+            if(("" + orig_forwarding_mode + forwarding_mode).trim() === "null") {
+                forwardingModeChanged = false;
+            } 
+        }
         //post url for forwarding options
-        if(isPriorityChanged(actPriorities, priorities) || (actVxlan !== vxlanid)) {
+        if(isPriorityChanged(actPriorities, priorities) || (actVxlan !== vxlanid) ||
+            (forwardingModeChanged === true)) {
             ajaxArry.push($.ajax({
                url : fwdOptnURL,
                type : fwdOptnActionType,
@@ -374,6 +415,9 @@ function handleCommitFailure(result) {
 
 function setEditPopupData() {
     $('input:radio[name="vxlanMode"][value="' + actVxlan + '"]').attr('checked',true);
+    $("#ddForwardingMode").data('contrailDropdown').value(
+        (orig_forwarding_mode === "" || null === orig_forwarding_mode) ? 
+            "default" : orig_forwarding_mode);
     $("#epTuples").html("");
     for(var i=0; i<actPriorities.length; i++) {
         var epEntry = createEPEntry(actPriorities[i], i);
@@ -396,8 +440,10 @@ function populateData(result) {
 	var vxLanIdentifierModeLabels = ["Auto Configured", "User Configured"];
 	var vxLanIdentifierModeValues = ["automatic", "configured"];
     var encapsulationMap = {"MPLSoGRE":"MPLS Over GRE", "MPLSoUDP":"MPLS Over UDP", "VXLAN":"VxLAN"};
+    var fwdModeMap = {"default" : "Default", "l2_l3" : "L2 and L3", "l2" : "L2 Only", "l3" : "L3 Only"};
     var gridDS = [];
     var priorities;
+    orig_forwarding_mode = "";
     $("#epTuples").html("");
 	if(null !== result) {
 		gvrConfig = result["global-vrouter-config"];
@@ -410,6 +456,14 @@ function populateData(result) {
 			//Set default 'automatic' for VxLANIdentifierMode
             actVxlan = vxLanIdentifierModeValues[0];
 		}
+
+        if(null !== gvrConfig["forwarding_mode"] && 
+            typeof gvrConfig["forwarding_mode"] !== "undefined") {
+            orig_forwarding_mode = gvrConfig["forwarding_mode"];
+        } else {
+            orig_forwarding_mode = null;
+        }
+
 		if(null !== gvrConfig["encapsulation_priorities"] && 
 			typeof gvrConfig["encapsulation_priorities"] !== "undefined" &&
 			null !== gvrConfig["encapsulation_priorities"]["encapsulation"] &&
@@ -454,6 +508,9 @@ function populateData(result) {
     gridDS.push({'property' : 'Global ASN', 'value' : ggasn});
     gridDS.push({'property' : 'iBGP Auto Mesh', 'value' : isiBGPAutoMesh});
     gridDS.push({'property' : 'IP Fabric Subnets', 'value':ipFabricSubnets});
+    gridDS.push({'property' : 'Forwarding Mode', 'value': (null === orig_forwarding_mode || (typeof orig_forwarding_mode === "string" && 
+        orig_forwarding_mode.trim() === "" )) ? fwdModeMap["default"] : fwdModeMap[orig_forwarding_mode]});
+
     gridGlobalConfig._dataView.setData(gridDS);
 }
 
diff --git a/webroot/config/forwardingoptions/ui/views/global_options_config.view b/webroot/config/forwardingoptions/ui/views/global_options_config.view
index 5c20cf68c..97e1bb42b 100644
--- a/webroot/config/forwardingoptions/ui/views/global_options_config.view
+++ b/webroot/config/forwardingoptions/ui/views/global_options_config.view
@@ -34,6 +34,16 @@
                             <div id="fwdOptnsWidget" class="widget-body">
                                 <div class="widget-main padding-4">
                                     <div class="row-fluid margin-0-0-10">
+                                        <div class="control-group">
+                                            <label class="control-label">Forwarding Mode</label>
+                                            <div class="controls">
+                                                <div class="row-fluid">
+                                                     <div class="span6">
+                                                         <input type="text" id="ddForwardingMode" name="ddForwardingMode" class="span12 pull-left" />
+                                                     </div>
+                                                </div>
+                                            </div>
+                                        </div>
                                         <div class="control-group">
                                             <label class="control-label">VxLAN Identifier Mode</label>
                                             <div class="controls">
diff --git a/webroot/config/linklocalservices/api/globalvrouterconfig.api.js b/webroot/config/linklocalservices/api/globalvrouterconfig.api.js
index 30e1215fd..a31226e3e 100644
--- a/webroot/config/linklocalservices/api/globalvrouterconfig.api.js
+++ b/webroot/config/linklocalservices/api/globalvrouterconfig.api.js
@@ -148,6 +148,7 @@ function updateForwardingOptions (request, response, appData) {
         return;
     }
     
+
     var gvrGetURL = '/global-vrouter-config/' + gvrId;
     configApiServer.apiGet(gvrGetURL, appData,
         function(error, data) {
@@ -159,6 +160,8 @@ function updateForwardingOptions (request, response, appData) {
         	    var gvrConfigData = commonUtils.cloneObj(data);
         	    gvrConfigData["global-vrouter-config"]["vxlan_network_identifier_mode"] =
         	    	gvrPutData["global-vrouter-config"]["vxlan_network_identifier_mode"];
+        	    gvrConfigData["global-vrouter-config"]["forwarding_mode"] =
+        	    	gvrPutData["global-vrouter-config"]["forwarding_mode"];
 
         	    gvrConfigData["global-vrouter-config"]["encapsulation_priorities"] = {};
         	    gvrConfigData["global-vrouter-config"]["encapsulation_priorities"]["encapsulation"] =
diff --git a/webroot/config/vn/ui/js/vn_config.js b/webroot/config/vn/ui/js/vn_config.js
index 58ba753fc..925424faa 100644
--- a/webroot/config/vn/ui/js/vn_config.js
+++ b/webroot/config/vn/ui/js/vn_config.js
@@ -274,7 +274,23 @@ function initComponents() {
     vnAjaxcount = 0;
 
     ddFwdMode = $("#ddFwdMode").contrailDropdown({
-        data: [{id:"l2_l3", text:'L2 and L3'}, {id:"l2", text:'L2 Only'}]
+        data: [{
+                id:"default", 
+                text:'Default'
+            },
+            {
+                id:"l2_l3", 
+                text:'L2 and L3'
+            }, 
+            {
+                id:"l2", 
+                text:'L2 Only'
+            },
+            {
+                id:"l3", 
+                text:'L3 Only'
+            }
+        ]
     });
 
     ddAdminState = $("#ddAdminState").contrailDropdown({
@@ -714,6 +730,7 @@ function initActions() {
             }
         }
         var fwdMode = $("#ddFwdMode").val();
+        fwdMode = (fwdMode === "default") ? "" : fwdMode;
         var gvrConfig = configObj["global-vrouter-config"];
         if(null !== gvrConfig && typeof gvrConfig !== "undefined" &&
             null !== gvrConfig["vxlan_network_identifier_mode"] &&
@@ -731,6 +748,9 @@ function initActions() {
         if(typeof fwdMode !== "undefined" && "" !== fwdMode) {
             vnConfig["virtual-network"]["virtual_network_properties"]
                 ["forwarding_mode"] = fwdMode;
+        } else {
+            vnConfig["virtual-network"]["virtual_network_properties"]
+                ["forwarding_mode"] = null;
         }
 
         if($("#allow_transit")[0].checked === true)
@@ -2219,10 +2239,10 @@ function successHandlerForGridVNRow(result) {
             }else if(fwdMode === "l3") {
                 fwdMode = "L3 Only";
             } else {
-                fwdMode = "";
+                fwdMode = "Default";
             }
         } else {
-            fwdMode = "L2 and L3";
+            fwdMode = "Default";
         }
         var vxlanid= "";
         if(vxlan_identifier_mode == "configured") {
@@ -2245,7 +2265,7 @@ function successHandlerForGridVNRow(result) {
             enableControles = false;
             if(reorder_policiesTxt.trim() == "") reorder_policiesTxt = "-";
             if(String(vxlanid).trim() == "") vxlanid = "-";
-            if(fwdMode.trim() == "") fwdMode = "-";
+            if(fwdMode.trim() == "") fwdMode = "Default";
             if(DNSServer.trim() == "") DNSServer = "-";
             if(hostRoutPrifix.trim() == "") hostRoutPrifix = "-";
         var prouterBackRefs = vn['physical_router_back_refs'];
@@ -2421,9 +2441,9 @@ function clearValuesFromDomElements() {
     txtVxLanId.val("");
     txtVNName[0].disabled = false;
     txtDisName.val("");
-    $("#ddFwdMode").data("contrailDropdown").value("l2_l3");
-    $("#ddFwdMode").data("contrailDropdown").enable(false);
-    $("#divFwdMode").removeClass("hide");
+    $("#ddFwdMode").data("contrailDropdown").value("default");
+    //$("#ddFwdMode").data("contrailDropdown").enable(false);
+    //$("#divFwdMode").removeClass("hide");
     $("#ddAdminState").data("contrailDropdown").value("true");
     $("#router_external")[0].checked = false;
     $("#is_shared")[0].checked = false;
@@ -2498,11 +2518,11 @@ function showVNEditWindow(mode, rowIndex) {
         url:"/api/tenants/config/global-vrouter-config",
         type:"GET"
     });
-    getAjaxs[3] = $.ajax({
+    /*getAjaxs[3] = $.ajax({
         url:"/api/admin/webconfig/network/L2_enable",
         type:"GET"
-    });
-    getAjaxs[4] = $.ajax({
+    });*/
+    getAjaxs[3] = $.ajax({
         url:"/api/tenants/config/physical-routers-list",
         type:"GET"
     });
@@ -2524,17 +2544,17 @@ function showVNEditWindow(mode, rowIndex) {
             }
             var results = arguments;
             var networkPolicies = jsonPath(results[0][0], "$.network-policys[*]");
-            var l2Mode = results[3][0].L2_enable;
-            var proutersResult = results[4][0];
-            if(l2Mode == false){
-                $("#ddFwdMode").data("contrailDropdown").enable(false);
-                $("#ddFwdMode").data("contrailDropdown").value("l2_l3");
-                $("#divFwdMode").addClass("hide");
-            } else {
-                $("#ddFwdMode").data("contrailDropdown").value("l2_l3");
+            //var l2Mode = results[3][0].L2_enable;
+            var proutersResult = results[3][0];
+            //if(l2Mode == false){
+            //    $("#ddFwdMode").data("contrailDropdown").enable(false);
+            //    $("#ddFwdMode").data("contrailDropdown").value("l2_l3");
+            //    $("#divFwdMode").addClass("hide");
+            //} else {
+                $("#ddFwdMode").data("contrailDropdown").value("default");
                 $("#ddFwdMode").data("contrailDropdown").enable(true);
-                $("#divFwdMode").removeClass("hide");
-            }
+                //$("#divFwdMode").removeClass("hide");
+            //}
             var nps = [];
             configObj["network-policys"] = [];
             var selectedDomain = $("#ddDomainSwitcher").data("contrailDropdown").text();
@@ -2770,9 +2790,11 @@ function showVNEditWindow(mode, rowIndex) {
                         $(txtVxLanId).val(vnProps["vxlan_network_identifier"]); 
                     }
                     if(null !== vnProps["forwarding_mode"] &&
-                        typeof vnProps["forwarding_mode"] && 
+                        typeof vnProps["forwarding_mode"] == "string" && 
                         "" !== vnProps["forwarding_mode"].trim()) {
                         $("#ddFwdMode").data("contrailDropdown").value(vnProps["forwarding_mode"]);
+                    } else {
+                        $("#ddFwdMode").data("contrailDropdown").value("default");
                     }
                     if(null !== vnProps["allow_transit"] && 
                         "" !==  vnProps["allow_transit"]) {