unsigned int mac_hash;
        int ret;
        u8 pkt_type;
-       bool hlocal, dlocal;
+       bool tx_pkt;
 
        __skb_queue_head_init(&list);
 
                bool consumed = false;
 
                ethh = eth_hdr(skb);
-               hlocal = ether_addr_equal(ethh->h_source, port->dev->dev_addr);
+               tx_pkt = IPVL_SKB_CB(skb)->tx_pkt;
                mac_hash = ipvlan_mac_hash(ethh->h_dest);
 
                if (ether_addr_equal(ethh->h_dest, port->dev->broadcast))
                else
                        pkt_type = PACKET_MULTICAST;
 
-               dlocal = false;
                rcu_read_lock();
                list_for_each_entry_rcu(ipvlan, &port->ipvlans, pnode) {
-                       if (hlocal && (ipvlan->dev == dev)) {
-                               dlocal = true;
+                       if (tx_pkt && (ipvlan->dev == skb->dev))
                                continue;
-                       }
                        if (!test_bit(mac_hash, ipvlan->mac_filters))
                                continue;
                        if (!(ipvlan->dev->flags & IFF_UP))
                                consumed = true;
                                nskb->pkt_type = pkt_type;
                                nskb->dev = ipvlan->dev;
-                               if (hlocal)
+                               if (tx_pkt)
                                        ret = dev_forward_skb(ipvlan->dev, nskb);
                                else
                                        ret = netif_rx(nskb);
                }
                rcu_read_unlock();
 
-               if (dlocal) {
+               if (tx_pkt) {
                        /* If the packet originated here, send it out. */
                        skb->dev = port->dev;
                        skb->pkt_type = pkt_type;
 }
 
 static void ipvlan_multicast_enqueue(struct ipvl_port *port,
-                                    struct sk_buff *skb)
+                                    struct sk_buff *skb, bool tx_pkt)
 {
        if (skb->protocol == htons(ETH_P_PAUSE)) {
                kfree_skb(skb);
                return;
        }
 
+       /* Record that the deferred packet is from TX or RX path. By
+        * looking at mac-addresses on packet will lead to erronus decisions.
+        * (This would be true for a loopback-mode on master device or a
+        * hair-pin mode of the switch.)
+        */
+       IPVL_SKB_CB(skb)->tx_pkt = tx_pkt;
+
        spin_lock(&port->backlog.lock);
        if (skb_queue_len(&port->backlog) < IPVLAN_QBACKLOG_LIMIT) {
                if (skb->dev)
 
        } else if (is_multicast_ether_addr(eth->h_dest)) {
                ipvlan_skb_crossing_ns(skb, NULL);
-               ipvlan_multicast_enqueue(ipvlan->port, skb);
+               ipvlan_multicast_enqueue(ipvlan->port, skb, true);
                return NET_XMIT_SUCCESS;
        }
 
                         */
                        if (nskb) {
                                ipvlan_skb_crossing_ns(nskb, NULL);
-                               ipvlan_multicast_enqueue(port, nskb);
+                               ipvlan_multicast_enqueue(port, nskb, false);
                        }
                }
        } else {