diff --git a/drivers/net/ethernet/mellanox/mlxsw/spectrum.c b/drivers/net/ethernet/mellanox/mlxsw/spectrum.c
index 321988ac57cc..e1e11c726c16 100644
--- a/drivers/net/ethernet/mellanox/mlxsw/spectrum.c
+++ b/drivers/net/ethernet/mellanox/mlxsw/spectrum.c
@@ -3667,6 +3667,9 @@ static int mlxsw_sp_basic_trap_groups_set(struct mlxsw_core *mlxsw_core)
 	return mlxsw_reg_write(mlxsw_core, MLXSW_REG(htgt), htgt_pl);
 }
 
+static int mlxsw_sp_netdevice_event(struct notifier_block *unused,
+				    unsigned long event, void *ptr);
+
 static int mlxsw_sp_init(struct mlxsw_core *mlxsw_core,
 			 const struct mlxsw_bus_info *mlxsw_bus_info)
 {
@@ -3736,6 +3739,16 @@ static int mlxsw_sp_init(struct mlxsw_core *mlxsw_core,
 		goto err_router_init;
 	}
 
+	/* Initialize netdevice notifier after router is initialized, so that
+	 * the event handler can use router structures.
+	 */
+	mlxsw_sp->netdevice_nb.notifier_call = mlxsw_sp_netdevice_event;
+	err = register_netdevice_notifier(&mlxsw_sp->netdevice_nb);
+	if (err) {
+		dev_err(mlxsw_sp->bus_info->dev, "Failed to register netdev notifier\n");
+		goto err_netdev_notifier;
+	}
+
 	err = mlxsw_sp_span_init(mlxsw_sp);
 	if (err) {
 		dev_err(mlxsw_sp->bus_info->dev, "Failed to init span system\n");
@@ -3769,6 +3782,8 @@ err_dpipe_init:
 err_acl_init:
 	mlxsw_sp_span_fini(mlxsw_sp);
 err_span_init:
+	unregister_netdevice_notifier(&mlxsw_sp->netdevice_nb);
+err_netdev_notifier:
 	mlxsw_sp_router_fini(mlxsw_sp);
 err_router_init:
 	mlxsw_sp_afa_fini(mlxsw_sp);
@@ -3795,6 +3810,7 @@ static void mlxsw_sp_fini(struct mlxsw_core *mlxsw_core)
 	mlxsw_sp_dpipe_fini(mlxsw_sp);
 	mlxsw_sp_acl_fini(mlxsw_sp);
 	mlxsw_sp_span_fini(mlxsw_sp);
+	unregister_netdevice_notifier(&mlxsw_sp->netdevice_nb);
 	mlxsw_sp_router_fini(mlxsw_sp);
 	mlxsw_sp_afa_fini(mlxsw_sp);
 	mlxsw_sp_counter_pool_fini(mlxsw_sp);
@@ -4481,13 +4497,17 @@ static bool mlxsw_sp_is_vrf_event(unsigned long event, void *ptr)
 	return netif_is_l3_master(info->upper_dev);
 }
 
-static int mlxsw_sp_netdevice_event(struct notifier_block *unused,
+static int mlxsw_sp_netdevice_event(struct notifier_block *nb,
 				    unsigned long event, void *ptr)
 {
 	struct net_device *dev = netdev_notifier_info_to_dev(ptr);
+	struct mlxsw_sp *mlxsw_sp;
 	int err = 0;
 
-	if (event == NETDEV_CHANGEADDR || event == NETDEV_CHANGEMTU)
+	mlxsw_sp = container_of(nb, struct mlxsw_sp, netdevice_nb);
+	if (mlxsw_sp_netdev_is_ipip(mlxsw_sp, dev))
+		err = mlxsw_sp_netdevice_ipip_event(mlxsw_sp, dev, event, ptr);
+	else if (event == NETDEV_CHANGEADDR || event == NETDEV_CHANGEMTU)
 		err = mlxsw_sp_netdevice_router_port_event(dev);
 	else if (mlxsw_sp_is_vrf_event(event, ptr))
 		err = mlxsw_sp_netdevice_vrf_event(dev, event, ptr);
@@ -4501,10 +4521,6 @@ static int mlxsw_sp_netdevice_event(struct notifier_block *unused,
 	return notifier_from_errno(err);
 }
 
-static struct notifier_block mlxsw_sp_netdevice_nb __read_mostly = {
-	.notifier_call = mlxsw_sp_netdevice_event,
-};
-
 static struct notifier_block mlxsw_sp_inetaddr_nb __read_mostly = {
 	.notifier_call = mlxsw_sp_inetaddr_event,
 	.priority = 10,	/* Must be called before FIB notifier block */
@@ -4532,7 +4548,6 @@ static int __init mlxsw_sp_module_init(void)
 {
 	int err;
 
-	register_netdevice_notifier(&mlxsw_sp_netdevice_nb);
 	register_inetaddr_notifier(&mlxsw_sp_inetaddr_nb);
 	register_inet6addr_notifier(&mlxsw_sp_inet6addr_nb);
 	register_netevent_notifier(&mlxsw_sp_router_netevent_nb);
@@ -4553,7 +4568,6 @@ err_core_driver_register:
 	unregister_netevent_notifier(&mlxsw_sp_router_netevent_nb);
 	unregister_inet6addr_notifier(&mlxsw_sp_inet6addr_nb);
 	unregister_inetaddr_notifier(&mlxsw_sp_inetaddr_nb);
-	unregister_netdevice_notifier(&mlxsw_sp_netdevice_nb);
 	return err;
 }
 
@@ -4564,7 +4578,6 @@ static void __exit mlxsw_sp_module_exit(void)
 	unregister_netevent_notifier(&mlxsw_sp_router_netevent_nb);
 	unregister_inet6addr_notifier(&mlxsw_sp_inet6addr_nb);
 	unregister_inetaddr_notifier(&mlxsw_sp_inetaddr_nb);
-	unregister_netdevice_notifier(&mlxsw_sp_netdevice_nb);
 }
 
 module_init(mlxsw_sp_module_init);
diff --git a/drivers/net/ethernet/mellanox/mlxsw/spectrum.h b/drivers/net/ethernet/mellanox/mlxsw/spectrum.h
index 8e45183dc9bb..28feb745a38a 100644
--- a/drivers/net/ethernet/mellanox/mlxsw/spectrum.h
+++ b/drivers/net/ethernet/mellanox/mlxsw/spectrum.h
@@ -161,6 +161,7 @@ struct mlxsw_sp {
 	struct {
 		DECLARE_BITMAP(usage, MLXSW_SP_KVD_LINEAR_SIZE);
 	} kvdl;
+	struct notifier_block netdevice_nb;
 
 	struct mlxsw_sp_counter_pool *counter_pool;
 	struct {
@@ -394,6 +395,13 @@ int mlxsw_sp_inet6addr_event(struct notifier_block *unused,
 			     unsigned long event, void *ptr);
 int mlxsw_sp_netdevice_vrf_event(struct net_device *l3_dev, unsigned long event,
 				 struct netdev_notifier_changeupper_info *info);
+bool mlxsw_sp_netdev_is_ipip(const struct mlxsw_sp *mlxsw_sp,
+			     const struct net_device *dev);
+int
+mlxsw_sp_netdevice_ipip_event(struct mlxsw_sp *mlxsw_sp,
+			      struct net_device *l3_dev,
+			      unsigned long event,
+			      struct netdev_notifier_changeupper_info *info);
 void
 mlxsw_sp_port_vlan_router_leave(struct mlxsw_sp_port_vlan *mlxsw_sp_port_vlan);
 void mlxsw_sp_rif_destroy(struct mlxsw_sp_rif *rif);
diff --git a/drivers/net/ethernet/mellanox/mlxsw/spectrum_ipip.h b/drivers/net/ethernet/mellanox/mlxsw/spectrum_ipip.h
index 1c2db831d83b..6fb49129ce87 100644
--- a/drivers/net/ethernet/mellanox/mlxsw/spectrum_ipip.h
+++ b/drivers/net/ethernet/mellanox/mlxsw/spectrum_ipip.h
@@ -47,7 +47,6 @@ struct mlxsw_sp_ipip_entry {
 	enum mlxsw_sp_ipip_type ipipt;
 	struct net_device *ol_dev; /* Overlay. */
 	struct mlxsw_sp_rif_ipip_lb *ol_lb;
-	unsigned int ref_count; /* Number of next hops using the tunnel. */
 	struct mlxsw_sp_fib_entry *decap_fib_entry;
 	struct list_head ipip_list_node;
 };
diff --git a/drivers/net/ethernet/mellanox/mlxsw/spectrum_router.c b/drivers/net/ethernet/mellanox/mlxsw/spectrum_router.c
index 6a356f4b99a3..3330120f2f8e 100644
--- a/drivers/net/ethernet/mellanox/mlxsw/spectrum_router.c
+++ b/drivers/net/ethernet/mellanox/mlxsw/spectrum_router.c
@@ -1002,9 +1002,8 @@ err_ol_ipip_lb_create:
 }
 
 static void
-mlxsw_sp_ipip_entry_destroy(struct mlxsw_sp_ipip_entry *ipip_entry)
+mlxsw_sp_ipip_entry_dealloc(struct mlxsw_sp_ipip_entry *ipip_entry)
 {
-	WARN_ON(ipip_entry->ref_count > 0);
 	mlxsw_sp_rif_destroy(&ipip_entry->ol_lb->common);
 	kfree(ipip_entry);
 }
@@ -1200,26 +1199,22 @@ mlxsw_sp_ipip_entry_find_decap(struct mlxsw_sp *mlxsw_sp,
 }
 
 static struct mlxsw_sp_ipip_entry *
-mlxsw_sp_ipip_entry_get(struct mlxsw_sp *mlxsw_sp,
-			enum mlxsw_sp_ipip_type ipipt,
-			struct net_device *ol_dev)
+mlxsw_sp_ipip_entry_create(struct mlxsw_sp *mlxsw_sp,
+			   enum mlxsw_sp_ipip_type ipipt,
+			   struct net_device *ol_dev)
 {
 	u32 ul_tb_id = mlxsw_sp_ipip_dev_ul_tb_id(ol_dev);
 	struct mlxsw_sp_router *router = mlxsw_sp->router;
-	struct mlxsw_sp_fib_entry *decap_fib_entry;
 	struct mlxsw_sp_ipip_entry *ipip_entry;
 	enum mlxsw_sp_l3proto ul_proto;
 	union mlxsw_sp_l3addr saddr;
 
+	/* The configuration where several tunnels have the same local address
+	 * in the same underlay table needs special treatment in the HW. That is
+	 * currently not implemented in the driver.
+	 */
 	list_for_each_entry(ipip_entry, &mlxsw_sp->router->ipip_list,
 			    ipip_list_node) {
-		if (ipip_entry->ol_dev == ol_dev)
-			goto inc_ref_count;
-
-		/* The configuration where several tunnels have the same local
-		 * address in the same underlay table needs special treatment in
-		 * the HW. That is currently not implemented in the driver.
-		 */
 		ul_proto = router->ipip_ops_arr[ipip_entry->ipipt]->ul_proto;
 		saddr = mlxsw_sp_ipip_netdev_saddr(ul_proto, ol_dev);
 		if (mlxsw_sp_ipip_entry_saddr_matches(mlxsw_sp, ul_proto, saddr,
@@ -1231,29 +1226,18 @@ mlxsw_sp_ipip_entry_get(struct mlxsw_sp *mlxsw_sp,
 	if (IS_ERR(ipip_entry))
 		return ipip_entry;
 
-	decap_fib_entry = mlxsw_sp_ipip_entry_find_decap(mlxsw_sp, ipip_entry);
-	if (decap_fib_entry)
-		mlxsw_sp_ipip_entry_promote_decap(mlxsw_sp, ipip_entry,
-						  decap_fib_entry);
-
 	list_add_tail(&ipip_entry->ipip_list_node,
 		      &mlxsw_sp->router->ipip_list);
 
-inc_ref_count:
-	++ipip_entry->ref_count;
 	return ipip_entry;
 }
 
 static void
-mlxsw_sp_ipip_entry_put(struct mlxsw_sp *mlxsw_sp,
-			struct mlxsw_sp_ipip_entry *ipip_entry)
+mlxsw_sp_ipip_entry_destroy(struct mlxsw_sp *mlxsw_sp,
+			    struct mlxsw_sp_ipip_entry *ipip_entry)
 {
-	if (--ipip_entry->ref_count == 0) {
-		list_del(&ipip_entry->ipip_list_node);
-		if (ipip_entry->decap_fib_entry)
-			mlxsw_sp_ipip_entry_demote_decap(mlxsw_sp, ipip_entry);
-		mlxsw_sp_ipip_entry_destroy(ipip_entry);
-	}
+	list_del(&ipip_entry->ipip_list_node);
+	mlxsw_sp_ipip_entry_dealloc(ipip_entry);
 }
 
 static bool
@@ -1295,6 +1279,168 @@ mlxsw_sp_ipip_entry_find_by_decap(struct mlxsw_sp *mlxsw_sp,
 	return NULL;
 }
 
+static bool mlxsw_sp_netdev_ipip_type(const struct mlxsw_sp *mlxsw_sp,
+				      const struct net_device *dev,
+				      enum mlxsw_sp_ipip_type *p_type)
+{
+	struct mlxsw_sp_router *router = mlxsw_sp->router;
+	const struct mlxsw_sp_ipip_ops *ipip_ops;
+	enum mlxsw_sp_ipip_type ipipt;
+
+	for (ipipt = 0; ipipt < MLXSW_SP_IPIP_TYPE_MAX; ++ipipt) {
+		ipip_ops = router->ipip_ops_arr[ipipt];
+		if (dev->type == ipip_ops->dev_type) {
+			if (p_type)
+				*p_type = ipipt;
+			return true;
+		}
+	}
+	return false;
+}
+
+bool mlxsw_sp_netdev_is_ipip(const struct mlxsw_sp *mlxsw_sp,
+			     const struct net_device *dev)
+{
+	return mlxsw_sp_netdev_ipip_type(mlxsw_sp, dev, NULL);
+}
+
+static struct mlxsw_sp_ipip_entry *
+mlxsw_sp_ipip_entry_find_by_ol_dev(struct mlxsw_sp *mlxsw_sp,
+				   const struct net_device *ol_dev)
+{
+	struct mlxsw_sp_ipip_entry *ipip_entry;
+
+	list_for_each_entry(ipip_entry, &mlxsw_sp->router->ipip_list,
+			    ipip_list_node)
+		if (ipip_entry->ol_dev == ol_dev)
+			return ipip_entry;
+
+	return NULL;
+}
+
+static int mlxsw_sp_netdevice_ipip_reg_event(struct mlxsw_sp *mlxsw_sp,
+					     struct net_device *ol_dev)
+{
+	struct mlxsw_sp_router *router = mlxsw_sp->router;
+	struct mlxsw_sp_ipip_entry *ipip_entry;
+	enum mlxsw_sp_ipip_type ipipt;
+
+	mlxsw_sp_netdev_ipip_type(mlxsw_sp, ol_dev, &ipipt);
+	if (router->ipip_ops_arr[ipipt]->can_offload(mlxsw_sp, ol_dev,
+						     MLXSW_SP_L3_PROTO_IPV4) ||
+	    router->ipip_ops_arr[ipipt]->can_offload(mlxsw_sp, ol_dev,
+						     MLXSW_SP_L3_PROTO_IPV6)) {
+		ipip_entry = mlxsw_sp_ipip_entry_create(mlxsw_sp, ipipt,
+							ol_dev);
+		if (IS_ERR(ipip_entry))
+			return PTR_ERR(ipip_entry);
+	}
+
+	return 0;
+}
+
+static void mlxsw_sp_netdevice_ipip_unreg_event(struct mlxsw_sp *mlxsw_sp,
+						struct net_device *ol_dev)
+{
+	struct mlxsw_sp_ipip_entry *ipip_entry;
+
+	ipip_entry = mlxsw_sp_ipip_entry_find_by_ol_dev(mlxsw_sp, ol_dev);
+	if (ipip_entry)
+		mlxsw_sp_ipip_entry_destroy(mlxsw_sp, ipip_entry);
+}
+
+static int mlxsw_sp_netdevice_ipip_up_event(struct mlxsw_sp *mlxsw_sp,
+					    struct net_device *ol_dev)
+{
+	struct mlxsw_sp_fib_entry *decap_fib_entry;
+	struct mlxsw_sp_ipip_entry *ipip_entry;
+
+	ipip_entry = mlxsw_sp_ipip_entry_find_by_ol_dev(mlxsw_sp, ol_dev);
+	if (ipip_entry) {
+		decap_fib_entry = mlxsw_sp_ipip_entry_find_decap(mlxsw_sp,
+								 ipip_entry);
+		if (decap_fib_entry)
+			mlxsw_sp_ipip_entry_promote_decap(mlxsw_sp, ipip_entry,
+							  decap_fib_entry);
+	}
+
+	return 0;
+}
+
+static void mlxsw_sp_netdevice_ipip_down_event(struct mlxsw_sp *mlxsw_sp,
+					       struct net_device *ol_dev)
+{
+	struct mlxsw_sp_ipip_entry *ipip_entry;
+
+	ipip_entry = mlxsw_sp_ipip_entry_find_by_ol_dev(mlxsw_sp, ol_dev);
+	if (ipip_entry && ipip_entry->decap_fib_entry)
+		mlxsw_sp_ipip_entry_demote_decap(mlxsw_sp, ipip_entry);
+}
+
+static int mlxsw_sp_netdevice_ipip_vrf_event(struct mlxsw_sp *mlxsw_sp,
+					     struct net_device *ol_dev)
+{
+	struct mlxsw_sp_fib_entry *decap_fib_entry;
+	struct mlxsw_sp_ipip_entry *ipip_entry;
+	struct mlxsw_sp_rif_ipip_lb *lb_rif;
+
+	ipip_entry = mlxsw_sp_ipip_entry_find_by_ol_dev(mlxsw_sp, ol_dev);
+	if (!ipip_entry)
+		return 0;
+
+	/* When a tunneling device is moved to a different VRF, we need to
+	 * update the backing loopback. Since RIFs can't be edited, we need to
+	 * destroy and recreate it. That might create a window of opportunity
+	 * where RALUE and RATR registers end up referencing a RIF that's
+	 * already gone. RATRs are handled by the RIF destroy, and to take care
+	 * of RALUE, demote the decap route back.
+	 */
+	if (ipip_entry->decap_fib_entry)
+		mlxsw_sp_ipip_entry_demote_decap(mlxsw_sp, ipip_entry);
+
+	lb_rif = mlxsw_sp_ipip_ol_ipip_lb_create(mlxsw_sp, ipip_entry->ipipt,
+						 ol_dev);
+	if (IS_ERR(lb_rif))
+		return PTR_ERR(lb_rif);
+	mlxsw_sp_rif_destroy(&ipip_entry->ol_lb->common);
+	ipip_entry->ol_lb = lb_rif;
+
+	if (ol_dev->flags & IFF_UP) {
+		decap_fib_entry = mlxsw_sp_ipip_entry_find_decap(mlxsw_sp,
+								 ipip_entry);
+		if (decap_fib_entry)
+			mlxsw_sp_ipip_entry_promote_decap(mlxsw_sp, ipip_entry,
+							  decap_fib_entry);
+	}
+
+	return 0;
+}
+
+int mlxsw_sp_netdevice_ipip_event(struct mlxsw_sp *mlxsw_sp,
+				  struct net_device *ol_dev,
+				  unsigned long event,
+				  struct netdev_notifier_changeupper_info *info)
+{
+	switch (event) {
+	case NETDEV_REGISTER:
+		return mlxsw_sp_netdevice_ipip_reg_event(mlxsw_sp, ol_dev);
+	case NETDEV_UNREGISTER:
+		mlxsw_sp_netdevice_ipip_unreg_event(mlxsw_sp, ol_dev);
+		return 0;
+	case NETDEV_UP:
+		return mlxsw_sp_netdevice_ipip_up_event(mlxsw_sp, ol_dev);
+	case NETDEV_DOWN:
+		mlxsw_sp_netdevice_ipip_down_event(mlxsw_sp, ol_dev);
+		return 0;
+	case NETDEV_CHANGEUPPER:
+		if (netif_is_l3_master(info->upper_dev))
+			return mlxsw_sp_netdevice_ipip_vrf_event(mlxsw_sp,
+								 ol_dev);
+		return 0;
+	}
+	return 0;
+}
+
 struct mlxsw_sp_neigh_key {
 	struct neighbour *n;
 };
@@ -2785,36 +2931,16 @@ static void mlxsw_sp_nexthop_neigh_fini(struct mlxsw_sp *mlxsw_sp,
 	neigh_release(n);
 }
 
-static bool mlxsw_sp_netdev_ipip_type(const struct mlxsw_sp *mlxsw_sp,
-				      const struct net_device *dev,
-				      enum mlxsw_sp_ipip_type *p_type)
-{
-	struct mlxsw_sp_router *router = mlxsw_sp->router;
-	const struct mlxsw_sp_ipip_ops *ipip_ops;
-	enum mlxsw_sp_ipip_type ipipt;
-
-	for (ipipt = 0; ipipt < MLXSW_SP_IPIP_TYPE_MAX; ++ipipt) {
-		ipip_ops = router->ipip_ops_arr[ipipt];
-		if (dev->type == ipip_ops->dev_type) {
-			if (p_type)
-				*p_type = ipipt;
-			return true;
-		}
-	}
-	return false;
-}
-
 static int mlxsw_sp_nexthop_ipip_init(struct mlxsw_sp *mlxsw_sp,
-				      enum mlxsw_sp_ipip_type ipipt,
 				      struct mlxsw_sp_nexthop *nh,
 				      struct net_device *ol_dev)
 {
 	if (!nh->nh_grp->gateway || nh->ipip_entry)
 		return 0;
 
-	nh->ipip_entry = mlxsw_sp_ipip_entry_get(mlxsw_sp, ipipt, ol_dev);
-	if (IS_ERR(nh->ipip_entry))
-		return PTR_ERR(nh->ipip_entry);
+	nh->ipip_entry = mlxsw_sp_ipip_entry_find_by_ol_dev(mlxsw_sp, ol_dev);
+	if (!nh->ipip_entry)
+		return -ENOENT;
 
 	__mlxsw_sp_nexthop_neigh_update(nh, false);
 	return 0;
@@ -2829,7 +2955,6 @@ static void mlxsw_sp_nexthop_ipip_fini(struct mlxsw_sp *mlxsw_sp,
 		return;
 
 	__mlxsw_sp_nexthop_neigh_update(nh, true);
-	mlxsw_sp_ipip_entry_put(mlxsw_sp, ipip_entry);
 	nh->ipip_entry = NULL;
 }
 
@@ -2873,7 +2998,7 @@ static int mlxsw_sp_nexthop4_type_init(struct mlxsw_sp *mlxsw_sp,
 	    router->ipip_ops_arr[ipipt]->can_offload(mlxsw_sp, dev,
 						     MLXSW_SP_L3_PROTO_IPV4)) {
 		nh->type = MLXSW_SP_NEXTHOP_TYPE_IPIP;
-		err = mlxsw_sp_nexthop_ipip_init(mlxsw_sp, ipipt, nh, dev);
+		err = mlxsw_sp_nexthop_ipip_init(mlxsw_sp, nh, dev);
 		if (err)
 			return err;
 		mlxsw_sp_nexthop_rif_init(nh, &nh->ipip_entry->ol_lb->common);
@@ -4135,7 +4260,7 @@ static int mlxsw_sp_nexthop6_type_init(struct mlxsw_sp *mlxsw_sp,
 	    router->ipip_ops_arr[ipipt]->can_offload(mlxsw_sp, dev,
 						     MLXSW_SP_L3_PROTO_IPV6)) {
 		nh->type = MLXSW_SP_NEXTHOP_TYPE_IPIP;
-		err = mlxsw_sp_nexthop_ipip_init(mlxsw_sp, ipipt, nh, dev);
+		err = mlxsw_sp_nexthop_ipip_init(mlxsw_sp, nh, dev);
 		if (err)
 			return err;
 		mlxsw_sp_nexthop_rif_init(nh, &nh->ipip_entry->ol_lb->common);