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350-401 · Question #897

In a Cisco VXLAN based network, which of the following best describes the main function of a VXLAN Tunnel Endpoint (VTEP)?

The correct answer is A. A device that performs VXLAN encapsulation and decapsulation.. VXLAN Tunnel Endpoint (VTEP) Explained A VTEP (VXLAN Tunnel Endpoint) is the network device (physical or virtual) responsible for encapsulating outgoing Ethernet frames into VXLAN/UDP packets and decapsulating incoming VXLAN packets back into Ethernet frames - making Option A cor

Submitted by eva_at· Mar 6, 2026Architecture

Question

In a Cisco VXLAN based network, which of the following best describes the main function of a VXLAN Tunnel Endpoint (VTEP)?

Options

  • AA device that performs VXLAN encapsulation and decapsulation.
  • BIt is a 24 bit segment ID that defines the broadcast domain.
  • CIt is the Logical interface where the encapsulation and de-encapsulation occurs.
  • DIt is a device that performs tunneling using GRE.

How the community answered

(27 responses)
  • A
    89% (24)
  • C
    7% (2)
  • D
    4% (1)

Explanation

VXLAN Tunnel Endpoint (VTEP) Explained

A VTEP (VXLAN Tunnel Endpoint) is the network device (physical or virtual) responsible for encapsulating outgoing Ethernet frames into VXLAN/UDP packets and decapsulating incoming VXLAN packets back into Ethernet frames - making Option A correct. Option B describes the VNI (VXLAN Network Identifier), which is the 24-bit segment ID defining the Layer 2 broadcast domain, not the VTEP itself. Option C confuses the VTEP with the NVE (Network Virtualization Edge) interface, which is the logical interface on the VTEP where encapsulation occurs - the VTEP is the device, not the interface. Option D is incorrect because VXLAN uses UDP encapsulation (port 4789), not GRE tunneling, which belongs to a different overlay technology.

Memory Tip: Think of a VTEP as a "VXLAN translator" - it sits at the edge of the VXLAN fabric and translates between regular Ethernet traffic and VXLAN-encapsulated traffic. If you remember "T = Translator/Terminator", you'll associate VTEP with the encapsulation/decapsulation function every time.

Topics

#VXLAN#VTEP#Encapsulation#Decapsulation

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