diff --git a/providers/pcep/tunnel/src/test/java/org/onosproject/provider/pcep/tunnel/impl/PcepClientAdapter.java b/providers/pcep/tunnel/src/test/java/org/onosproject/provider/pcep/tunnel/impl/PcepClientAdapter.java
index 2babb3a..4f6178a 100644
--- a/providers/pcep/tunnel/src/test/java/org/onosproject/provider/pcep/tunnel/impl/PcepClientAdapter.java
+++ b/providers/pcep/tunnel/src/test/java/org/onosproject/provider/pcep/tunnel/impl/PcepClientAdapter.java
@@ -17,11 +17,14 @@
 
 import static org.junit.Assert.assertNotNull;
 
+import java.util.HashMap;
 import java.util.List;
+import java.util.Map;
 import java.util.concurrent.RejectedExecutionException;
 
 import org.jboss.netty.channel.Channel;
 import org.onosproject.pcep.controller.ClientCapability;
+import org.onosproject.pcep.controller.LspKey;
 import org.onosproject.pcep.controller.PccId;
 import org.onosproject.pcep.controller.PcepClient;
 import org.onosproject.pcep.controller.PcepSyncStatus;
@@ -45,6 +48,7 @@
     private PcepVersion pcepVersion;
     private PcepSyncStatus lspDbSyncStatus;
     private PcepSyncStatus labelDbSyncStatus;
+    private Map<LspKey, Boolean> lspDelegationInfo = new HashMap<>();
 
     /**
      * Initialize instance with specified parameters.
@@ -147,4 +151,14 @@
     @Override
     public void deleteNode(PccId pccId) {
     }
+
+    @Override
+    public void setLspAndDelegationInfo(LspKey lspKey, boolean dFlag) {
+        lspDelegationInfo.put(lspKey, dFlag);
+    }
+
+    @Override
+    public Boolean delegationInfo(LspKey lspKey) {
+        return lspDelegationInfo.get(lspKey);
+    }
 }
diff --git a/providers/pcep/tunnel/src/test/java/org/onosproject/provider/pcep/tunnel/impl/PcepClientControllerAdapter.java b/providers/pcep/tunnel/src/test/java/org/onosproject/provider/pcep/tunnel/impl/PcepClientControllerAdapter.java
index 39d863b..769268b 100644
--- a/providers/pcep/tunnel/src/test/java/org/onosproject/provider/pcep/tunnel/impl/PcepClientControllerAdapter.java
+++ b/providers/pcep/tunnel/src/test/java/org/onosproject/provider/pcep/tunnel/impl/PcepClientControllerAdapter.java
@@ -24,8 +24,6 @@
 
 import org.apache.felix.scr.annotations.Activate;
 import org.apache.felix.scr.annotations.Deactivate;
-import org.onlab.packet.IpAddress;
-import org.onosproject.pcep.controller.ClientCapability;
 import org.onosproject.pcep.controller.PccId;
 import org.onosproject.pcep.controller.PcepClient;
 import org.onosproject.pcep.controller.PcepClientController;
@@ -75,16 +73,11 @@
 
     @Override
     public PcepClient getClient(PccId pccId) {
-        if (null != connectedClients.get(pccId)) {
+        if (connectedClients.get(pccId) != null) {
             return connectedClients.get(pccId);
         }
         PcepClientAdapter pc = new PcepClientAdapter();
-        if (pccId.ipAddress().equals(IpAddress.valueOf(0xC010103))
-            || pccId.ipAddress().equals(IpAddress.valueOf(0xB6024E22))) {
-            pc.setCapability(new ClientCapability(true, false, false, false, false));
-        } else {
-            pc.setCapability(new ClientCapability(true, true, true, false, false));
-        }
+
         pc.init(PccId.pccId(pccId.ipAddress()), PcepVersion.PCEP_1);
         connectedClients.put(pccId, pc);
         return pc;
diff --git a/providers/pcep/tunnel/src/test/java/org/onosproject/provider/pcep/tunnel/impl/PcepReleaseTunnelProviderTest.java b/providers/pcep/tunnel/src/test/java/org/onosproject/provider/pcep/tunnel/impl/PcepReleaseTunnelProviderTest.java
index ec9c1aa..22a683b 100644
--- a/providers/pcep/tunnel/src/test/java/org/onosproject/provider/pcep/tunnel/impl/PcepReleaseTunnelProviderTest.java
+++ b/providers/pcep/tunnel/src/test/java/org/onosproject/provider/pcep/tunnel/impl/PcepReleaseTunnelProviderTest.java
@@ -40,6 +40,7 @@
 import org.onosproject.incubator.net.tunnel.Tunnel;
 import org.onosproject.incubator.net.tunnel.TunnelId;
 import org.onosproject.incubator.net.tunnel.TunnelName;
+import org.onosproject.mastership.MastershipServiceAdapter;
 import org.onosproject.net.Annotations;
 import org.onosproject.net.ConnectPoint;
 import org.onosproject.net.DefaultAnnotations;
@@ -49,7 +50,10 @@
 import org.onosproject.net.Link;
 import org.onosproject.net.Path;
 import org.onosproject.net.PortNumber;
+import org.onosproject.net.device.DeviceServiceAdapter;
 import org.onosproject.net.provider.ProviderId;
+import org.onosproject.pcep.controller.ClientCapability;
+import org.onosproject.pcep.controller.PccId;
 import org.onosproject.pcepio.types.StatefulIPv4LspIdentifiersTlv;
 
 /**
@@ -64,12 +68,16 @@
     private final PcepControllerAdapter ctl = new PcepControllerAdapter();
     private final PcepTunnelApiMapper pcepTunnelAPIMapper = new PcepTunnelApiMapper();
     private final TunnelServiceAdapter  tunnelService = new TunnelServiceAdapter();
+    private final DeviceServiceAdapter  deviceService = new DeviceServiceAdapter();
+    private final MastershipServiceAdapter  mastershipService = new MastershipServiceAdapter();
 
     @Before
     public void setUp() throws IOException {
         tunnelProvider.tunnelProviderRegistry = registry;
         tunnelProvider.pcepClientController = controller;
         tunnelProvider.controller = ctl;
+        tunnelProvider.deviceService = deviceService;
+        tunnelProvider.mastershipService = mastershipService;
         tunnelProvider.tunnelService = tunnelService;
         tunnelProvider.pcepTunnelApiMapper = pcepTunnelAPIMapper;
         tunnelProvider.cfgService = new ComponentConfigAdapter();
@@ -125,6 +133,8 @@
         tunnelProvider.pcepTunnelApiMapper.addToTunnelIdMap(pcepTunnelData);
 
         tunnelProvider.pcepTunnelApiMapper.handleCreateTunnelRequestQueue(1, pcepTunnelData);
+        controller.getClient(PccId.pccId(IpAddress.valueOf(0xB6024E20))).setCapability(
+                new ClientCapability(true, true, true, true, true));
 
         tunnelProvider.releaseTunnel(tunnel);
         assertThat(tunnelProvider.pcepTunnelApiMapper, not(nullValue()));
@@ -179,6 +189,8 @@
         tunnelProvider.pcepTunnelApiMapper.addToTunnelIdMap(pcepTunnelData);
 
         tunnelProvider.pcepTunnelApiMapper.handleCreateTunnelRequestQueue(1, pcepTunnelData);
+        controller.getClient(PccId.pccId(IpAddress.valueOf(0xB6024E22))).setCapability(
+                new ClientCapability(true, false, false, true, true));
 
         tunnelProvider.releaseTunnel(tunnel);
         assertThat(tunnelProvider.pcepTunnelApiMapper.checkFromTunnelRequestQueue(1), is(false));
@@ -233,6 +245,8 @@
         tunnelProvider.pcepTunnelApiMapper.addToTunnelIdMap(pcepTunnelData);
 
         tunnelProvider.pcepTunnelApiMapper.handleCreateTunnelRequestQueue(1, pcepTunnelData);
+        controller.getClient(PccId.pccId(IpAddress.valueOf(0xB6024E20))).setCapability(
+                new ClientCapability(true, true, true, true, true));
 
         tunnelProvider.releaseTunnel(tunnel);
         assertThat(tunnelProvider.pcepTunnelApiMapper, not(nullValue()));
@@ -287,6 +301,8 @@
         tunnelProvider.pcepTunnelApiMapper.addToTunnelIdMap(pcepTunnelData);
 
         tunnelProvider.pcepTunnelApiMapper.handleCreateTunnelRequestQueue(1, pcepTunnelData);
+        controller.getClient(PccId.pccId(IpAddress.valueOf(0xB6024E20))).setCapability(
+                new ClientCapability(true, true, true, true, true));
 
         tunnelProvider.releaseTunnel(tunnel);
         assertThat(tunnelProvider.pcepTunnelApiMapper, not(nullValue()));
@@ -298,5 +314,7 @@
         tunnelProvider.controller = null;
         tunnelProvider.pcepClientController = null;
         tunnelProvider.tunnelProviderRegistry = null;
+        tunnelProvider.deviceService = null;
+        tunnelProvider.mastershipService = null;
     }
 }
diff --git a/providers/pcep/tunnel/src/test/java/org/onosproject/provider/pcep/tunnel/impl/PcepSetupTunnelProviderTest.java b/providers/pcep/tunnel/src/test/java/org/onosproject/provider/pcep/tunnel/impl/PcepSetupTunnelProviderTest.java
index d2c4d5e..078deb1 100644
--- a/providers/pcep/tunnel/src/test/java/org/onosproject/provider/pcep/tunnel/impl/PcepSetupTunnelProviderTest.java
+++ b/providers/pcep/tunnel/src/test/java/org/onosproject/provider/pcep/tunnel/impl/PcepSetupTunnelProviderTest.java
@@ -40,6 +40,7 @@
 import org.onosproject.incubator.net.tunnel.Tunnel;
 import org.onosproject.incubator.net.tunnel.TunnelId;
 import org.onosproject.incubator.net.tunnel.TunnelName;
+import org.onosproject.mastership.MastershipServiceAdapter;
 import org.onosproject.net.Annotations;
 import org.onosproject.net.ConnectPoint;
 import org.onosproject.net.DefaultAnnotations;
@@ -49,7 +50,10 @@
 import org.onosproject.net.Link;
 import org.onosproject.net.Path;
 import org.onosproject.net.PortNumber;
+import org.onosproject.net.device.DeviceServiceAdapter;
 import org.onosproject.net.provider.ProviderId;
+import org.onosproject.pcep.controller.ClientCapability;
+import org.onosproject.pcep.controller.PccId;
 
 /**
  * Test for PCEP setup tunnel.
@@ -62,12 +66,16 @@
     private final PcepClientControllerAdapter controller = new PcepClientControllerAdapter();
     private final PcepControllerAdapter ctl = new PcepControllerAdapter();
     private final TunnelServiceAdapter  tunnelService = new TunnelServiceAdapter();
+    private final DeviceServiceAdapter  deviceService = new DeviceServiceAdapter();
+    private final MastershipServiceAdapter  mastershipService = new MastershipServiceAdapter();
 
     @Before
     public void setUp() throws IOException {
         tunnelProvider.tunnelProviderRegistry = registry;
         tunnelProvider.pcepClientController = controller;
         tunnelProvider.controller = ctl;
+        tunnelProvider.deviceService = deviceService;
+        tunnelProvider.mastershipService = mastershipService;
         tunnelProvider.cfgService = new ComponentConfigAdapter();
         tunnelProvider.tunnelService = tunnelService;
         tunnelProvider.activate();
@@ -111,6 +119,8 @@
         tunnel = new DefaultTunnel(pid, ipTunnelEndPointSrc, ipTunnelEndPointDst, Tunnel.Type.MPLS,
                                    new DefaultGroupId(0), TunnelId.valueOf("1"), TunnelName.tunnelName("T123"),
                                    path, annotations);
+        controller.getClient(PccId.pccId(IpAddress.valueOf(0xC010101))).setCapability(
+                new ClientCapability(true, true, true, true, true));
 
         tunnelProvider.setupTunnel(tunnel, path);
         assertThat(tunnelProvider.pcepTunnelApiMapper, not(nullValue()));
@@ -154,6 +164,8 @@
         tunnel = new DefaultTunnel(pid, ipTunnelEndPointSrc, ipTunnelEndPointDst, Tunnel.Type.MPLS,
                                    new DefaultGroupId(0), TunnelId.valueOf("1"), TunnelName.tunnelName("T123"),
                                    path, annotations);
+        controller.getClient(PccId.pccId(IpAddress.valueOf(0xC010103))).setCapability(
+                new ClientCapability(true, true, true, true, true));
 
         tunnelProvider.setupTunnel(tunnel, path);
         assertThat(tunnelProvider.pcepTunnelApiMapper.checkFromTunnelRequestQueue(1), is(false));
@@ -197,6 +209,8 @@
         tunnel = new DefaultTunnel(pid, ipTunnelEndPointSrc, ipTunnelEndPointDst, Tunnel.Type.MPLS,
                                    new DefaultGroupId(0), TunnelId.valueOf("1"), TunnelName.tunnelName("T123"),
                                    path, annotations);
+        controller.getClient(PccId.pccId(IpAddress.valueOf(0xC010101))).setCapability(
+                new ClientCapability(true, true, true, true, true));
 
         tunnelProvider.setupTunnel(tunnel, path);
         assertThat(tunnelProvider.pcepTunnelApiMapper, not(nullValue()));
@@ -240,6 +254,8 @@
         tunnel = new DefaultTunnel(pid, ipTunnelEndPointSrc, ipTunnelEndPointDst, Tunnel.Type.MPLS,
                                    new DefaultGroupId(0), TunnelId.valueOf("1"), TunnelName.tunnelName("T123"),
                                    path, annotations);
+        controller.getClient(PccId.pccId(IpAddress.valueOf(0xC010101))).setCapability(
+                new ClientCapability(true, true, true, true, true));
 
         tunnelProvider.setupTunnel(tunnel, path);
         assertThat(tunnelProvider.pcepTunnelApiMapper, not(nullValue()));
@@ -251,5 +267,7 @@
         tunnelProvider.controller = null;
         tunnelProvider.pcepClientController = null;
         tunnelProvider.tunnelProviderRegistry = null;
+        tunnelProvider.deviceService = null;
+        tunnelProvider.mastershipService = null;
     }
 }
diff --git a/providers/pcep/tunnel/src/test/java/org/onosproject/provider/pcep/tunnel/impl/PcepTunnelAddedTest.java b/providers/pcep/tunnel/src/test/java/org/onosproject/provider/pcep/tunnel/impl/PcepTunnelAddedTest.java
index 9d80daf..fe2c8b2 100644
--- a/providers/pcep/tunnel/src/test/java/org/onosproject/provider/pcep/tunnel/impl/PcepTunnelAddedTest.java
+++ b/providers/pcep/tunnel/src/test/java/org/onosproject/provider/pcep/tunnel/impl/PcepTunnelAddedTest.java
@@ -24,27 +24,36 @@
 import static org.onosproject.provider.pcep.tunnel.impl.PcepAnnotationKeys.LSP_SIG_TYPE;
 import static org.onosproject.provider.pcep.tunnel.impl.PcepAnnotationKeys.PCC_TUNNEL_ID;
 import static org.onosproject.provider.pcep.tunnel.impl.PcepAnnotationKeys.PLSP_ID;
+import static org.onosproject.provider.pcep.tunnel.impl.PcepAnnotationKeys.DELEGATE;
 import static org.onosproject.provider.pcep.tunnel.impl.LspType.WITHOUT_SIGNALLING_AND_WITHOUT_SR;
 import static org.onosproject.pcep.controller.PcepSyncStatus.SYNCED;
 import static org.onosproject.pcep.controller.PcepSyncStatus.IN_SYNC;
+import static org.onosproject.net.Device.Type.ROUTER;
+import static org.onosproject.net.MastershipRole.MASTER;
 
 import java.io.IOException;
 import java.util.Collection;
 import java.util.Collections;
 import java.util.HashMap;
 import java.util.HashSet;
+import java.util.LinkedList;
+import java.util.List;
+import java.util.concurrent.TimeUnit;
 
 import org.jboss.netty.buffer.ChannelBuffer;
 import org.jboss.netty.buffer.ChannelBuffers;
 import org.junit.After;
 import org.junit.Before;
 import org.junit.Test;
+import org.onlab.packet.ChassisId;
 import org.onlab.packet.IpAddress;
 import org.onosproject.cfg.ComponentConfigAdapter;
 import org.onosproject.core.ApplicationId;
 import org.onosproject.incubator.net.tunnel.DefaultTunnel;
 import org.onosproject.incubator.net.tunnel.IpTunnelEndPoint;
 import org.onosproject.incubator.net.tunnel.Tunnel;
+import org.onosproject.incubator.net.tunnel.Tunnel.Type;
+import org.onosproject.incubator.net.tunnel.TunnelAdminService;
 import org.onosproject.incubator.net.tunnel.TunnelDescription;
 import org.onosproject.incubator.net.tunnel.TunnelEndPoint;
 import org.onosproject.incubator.net.tunnel.TunnelId;
@@ -52,16 +61,26 @@
 import org.onosproject.incubator.net.tunnel.TunnelProvider;
 import org.onosproject.incubator.net.tunnel.TunnelProviderService;
 import org.onosproject.incubator.net.tunnel.Tunnel.State;
+import org.onosproject.mastership.MastershipServiceAdapter;
+import org.onosproject.net.AnnotationKeys;
 import org.onosproject.net.DefaultAnnotations;
+import org.onosproject.net.DefaultDevice;
+import org.onosproject.net.Device;
+import org.onosproject.net.DeviceId;
 import org.onosproject.net.ElementId;
+import org.onosproject.net.MastershipRole;
 import org.onosproject.net.Path;
 import org.onosproject.net.SparseAnnotations;
+import org.onosproject.net.device.DeviceServiceAdapter;
+import org.onosproject.net.provider.ProviderId;
 import org.onosproject.pcepio.exceptions.PcepOutOfBoundMessageException;
 import org.onosproject.pcepio.exceptions.PcepParseException;
 import org.onosproject.pcepio.protocol.PcepFactories;
 import org.onosproject.pcepio.protocol.PcepMessage;
 import org.onosproject.pcepio.protocol.PcepMessageReader;
+import org.onosproject.pcepio.protocol.PcepVersion;
 import org.onosproject.pcep.controller.ClientCapability;
+import org.onosproject.pcep.controller.LspKey;
 import org.onosproject.pcep.controller.PccId;
 
 import com.google.common.collect.ImmutableSet;
@@ -71,13 +90,73 @@
  */
 public class PcepTunnelAddedTest {
 
-    static final String PROVIDER_ID = "org.onosproject.provider.tunnel.pcep";
+    public static final String PROVIDER_ID = "org.onosproject.provider.tunnel.pcep";
+    public static final String UNKOWN = "UNKOWN";
     PcepTunnelProvider tunnelProvider = new PcepTunnelProvider();
     private final MockTunnelProviderRegistryAdapter registry = new MockTunnelProviderRegistryAdapter();
     private final PcepClientControllerAdapter controller = new PcepClientControllerAdapter();
     private final PcepControllerAdapter ctl = new PcepControllerAdapter();
     private final PcepTunnelApiMapper pcepTunnelAPIMapper = new PcepTunnelApiMapper();
     private final MockTunnelServiceAdapter tunnelService = new MockTunnelServiceAdapter();
+    public final MockDeviceService deviceService = new MockDeviceService();
+    private final MockMasterShipService masterShipService = new MockMasterShipService();
+    private final MockTunnelAdminService tunnelAdminService = new MockTunnelAdminService();
+
+    private class MockTunnelAdminService implements TunnelAdminService {
+
+        @Override
+        public void removeTunnel(TunnelId tunnelId) {
+            // TODO Auto-generated method stub
+        }
+
+        @Override
+        public void removeTunnels(TunnelEndPoint src, TunnelEndPoint dst, ProviderId producerName) {
+            // TODO Auto-generated method stub
+        }
+
+        @Override
+        public void removeTunnels(TunnelEndPoint src, TunnelEndPoint dst, Type type, ProviderId producerName) {
+            // TODO Auto-generated method stub
+        }
+
+        @Override
+        public void updateTunnel(Tunnel tunnel, Path path) {
+            if (tunnelService.tunnelIdAsKeyStore.containsKey(tunnel.tunnelId())) {
+                tunnelService.tunnelIdAsKeyStore.replace(tunnel.tunnelId(), tunnel);
+            }
+        }
+    }
+
+    private class MockMasterShipService extends MastershipServiceAdapter {
+        boolean set;
+
+        private void setMaster(boolean isMaster) {
+            this.set = isMaster;
+        }
+
+        @Override
+        public MastershipRole getLocalRole(DeviceId deviceId) {
+            return set ? MastershipRole.MASTER : MastershipRole.STANDBY;
+        }
+
+        @Override
+        public boolean isLocalMaster(DeviceId deviceId) {
+            return getLocalRole(deviceId) == MASTER;
+        }
+    }
+
+    private class MockDeviceService extends DeviceServiceAdapter {
+        List<Device> devices = new LinkedList<>();
+
+        private void addDevice(Device dev) {
+            devices.add(dev);
+        }
+
+        @Override
+        public Iterable<Device> getAvailableDevices() {
+            return devices;
+        }
+    }
 
     private class MockTunnelProviderRegistryAdapter extends TunnelProviderRegistryAdapter {
         public long tunnelIdCounter;
@@ -97,12 +176,34 @@
 
             @Override
             public TunnelId tunnelAdded(TunnelDescription tunnel) {
-                return TunnelId.valueOf(String.valueOf(++tunnelIdCounter));
+                TunnelId id = TunnelId.valueOf(String.valueOf(++tunnelIdCounter));
+                Tunnel storedTunnel = new DefaultTunnel(ProviderId.NONE,
+                        tunnel.src(), tunnel.dst(),
+                        tunnel.type(),
+                        tunnel.groupId(),
+                        id,
+                        tunnel.tunnelName(),
+                        tunnel.path(),
+                        tunnel.resource(),
+                        tunnel.annotations());
+                tunnelService.tunnelIdAsKeyStore.put(id, storedTunnel);
+                return id;
             }
 
             @Override
             public TunnelId tunnelAdded(TunnelDescription tunnel, State state) {
-                return TunnelId.valueOf(String.valueOf(++tunnelIdCounter));
+                TunnelId id = TunnelId.valueOf(String.valueOf(++tunnelIdCounter));
+                Tunnel storedTunnel = new DefaultTunnel(ProviderId.NONE,
+                        tunnel.src(), tunnel.dst(),
+                        tunnel.type(),
+                        tunnel.groupId(),
+                        id,
+                        tunnel.tunnelName(),
+                        tunnel.path(),
+                        tunnel.resource(),
+                        tunnel.annotations());
+                tunnelService.tunnelIdAsKeyStore.put(id, storedTunnel);
+                return id;
             }
 
             @Override
@@ -168,9 +269,12 @@
         tunnelProvider.tunnelProviderRegistry = registry;
         tunnelProvider.pcepClientController = controller;
         tunnelProvider.controller = ctl;
+        tunnelProvider.deviceService = deviceService;
+        tunnelProvider.mastershipService = masterShipService;
         tunnelProvider.pcepTunnelApiMapper = pcepTunnelAPIMapper;
         tunnelProvider.cfgService = new ComponentConfigAdapter();
         tunnelProvider.tunnelService = tunnelService;
+        tunnelProvider.tunnelAdminService = tunnelAdminService;
         tunnelProvider.service = registry.register(tunnelProvider);
         tunnelProvider.activate();
     }
@@ -210,6 +314,19 @@
 
         PcepMessageReader<PcepMessage> reader = PcepFactories.getGenericReader();
         PcepMessage message = reader.readFrom(buffer);
+
+        DefaultAnnotations.Builder newBuilder = DefaultAnnotations.builder();
+        newBuilder.set(PcepTunnelProvider.LSRID, "1.1.1.1");
+        newBuilder.set(AnnotationKeys.TYPE, "L3");
+        Device device = new DefaultDevice(ProviderId.NONE, DeviceId.deviceId("1.1.1.1"), ROUTER,
+                UNKOWN, UNKOWN, UNKOWN,
+                UNKOWN, new ChassisId(),
+                newBuilder.build());
+
+        deviceService.addDevice(device);
+        controller.getClient(PccId.pccId(IpAddress.valueOf("1.1.1.1"))).setCapability(
+                new ClientCapability(true, true, true, true, true));
+        masterShipService.setMaster(true);
         controller.processClientMessage(PccId.pccId(IpAddress.valueOf("1.1.1.1")), message);
 
         assertThat(registry.tunnelIdCounter, is((long) 1));
@@ -254,14 +371,20 @@
                 .set(LSP_SIG_TYPE, WITHOUT_SIGNALLING_AND_WITHOUT_SR.name())
                 .set(PCC_TUNNEL_ID, String.valueOf(1))
                 .set(PLSP_ID, String.valueOf(1))
-                .set(LOCAL_LSP_ID, String.valueOf(1)).build();
+                .set(LOCAL_LSP_ID, String.valueOf(1))
+                .set(DELEGATE, String.valueOf("true"))
+                .build();
 
         Tunnel tunnel = new DefaultTunnel(null, tunnelEndPointSrc, tunnelEndPointDst, MPLS, INIT, null, null,
                                           TunnelName.tunnelName("T123"), null, annotations);
         tunnelService.setupTunnel(null, null, tunnel, null);
 
         PccId pccId = PccId.pccId(IpAddress.valueOf(0x4e1f0400));
-        controller.getClient(pccId).setCapability(new ClientCapability(true, true, true, false, false));
+        PcepClientAdapter pc = new PcepClientAdapter();
+        pc.init(pccId, PcepVersion.PCEP_1);
+        masterShipService.setMaster(true);
+        controller.getClient(pccId).setLspAndDelegationInfo(new LspKey(1, (short) 1), true);
+        controller.getClient(pccId).setCapability(new ClientCapability(true, true, true, true, true));
         controller.getClient(pccId).setLspDbSyncStatus(SYNCED);
 
         // Process update message.
@@ -308,15 +431,127 @@
         PcepMessageReader<PcepMessage> reader = PcepFactories.getGenericReader();
         PcepMessage message = reader.readFrom(buffer);
 
+        DefaultAnnotations.Builder newBuilder = DefaultAnnotations.builder();
+        newBuilder.set(PcepTunnelProvider.LSRID, "1.1.1.1");
+        newBuilder.set(AnnotationKeys.TYPE, "L3");
+        Device device = new DefaultDevice(ProviderId.NONE, DeviceId.deviceId("1.1.1.1"), ROUTER,
+                UNKOWN, UNKOWN, UNKOWN,
+                UNKOWN, new ChassisId(),
+                newBuilder.build());
+
+        deviceService.addDevice(device);
+
         PccId pccId = PccId.pccId(IpAddress.valueOf("1.1.1.1"));
         controller.getClient(pccId).setLspDbSyncStatus(SYNCED);
-        controller.getClient(pccId).setCapability(new ClientCapability(true, true, true, false, false));
+        controller.getClient(pccId).setCapability(new ClientCapability(true, true, true, true, true));
+
+        PcepClientAdapter pc = new PcepClientAdapter();
+        pc.init(pccId, PcepVersion.PCEP_1);
+        controller.getClient(pccId).setLspAndDelegationInfo(new LspKey(1, (short) 1), true);
+        masterShipService.setMaster(true);
         controller.processClientMessage(pccId, message);
 
         assertThat(registry.tunnelIdCounter, is((long) 1));
     }
 
     /**
+     * Tests PCRpt msg with D flag set and delegated to non-master.
+     *
+     * @throws InterruptedException while waiting for delay
+     */
+    @Test
+    public void tunnelProviderAddedTest4() throws PcepParseException, PcepOutOfBoundMessageException,
+            InterruptedException {
+        byte[] reportMsg = new byte[] {0x20, 0x0a, 0x00, (byte) 0x84,
+                0x21, 0x10, 0x00, 0x14,  0x00, 0x00, 0x00, 0x00,  0x00, 0x00, 0x00, 0x01, //SRP object
+                0x00, 0x1c, 0x00, 0x04, // PATH-SETUP-TYPE TLV
+                0x00, 0x00, 0x00, 0x02,
+                0x20, 0x10, 0x00, 0x24, 0x00, 0x00, 0x10, 0x02, //LSP object
+                0x00, 0x11, 0x00, 0x02, 0x54, 0x31, 0x00, 0x00, //symbolic path tlv
+                0x00, 0x12, 0x00, 0x10, // IPv4-LSP-IDENTIFIER-TLV
+                0x01, 0x01, 0x01, 0x01,
+                0x00, 0x01, 0x00, 0x01,
+                0x01, 0x01, 0x01, 0x01,
+                0x05, 0x05, 0x05, 0x05,
+
+                0x07, 0x10, 0x00, 0x14, //ERO object
+                0x01, 0x08, (byte) 0x01, 0x01, 0x01, 0x01, 0x04, 0x00, // ERO IPv4 sub objects
+                0x01, 0x08, (byte) 0x05, 0x05, 0x05, 0x05, 0x04, 0x00,
+
+                0x08, 0x10, 0x00, 0x34, //RRO object
+                0x01, 0x08, 0x11, 0x01, 0x01, 0x01, 0x04, 0x00, // RRO IPv4 sub objects
+                0x01, 0x08, 0x11, 0x01, 0x01, 0x02, 0x04, 0x00,
+                0x01, 0x08, 0x06, 0x06, 0x06, 0x06, 0x04, 0x00,
+                0x01, 0x08, 0x12, 0x01, 0x01, 0x02, 0x04, 0x00,
+                0x01, 0x08, 0x12, 0x01, 0x01, 0x01, 0x04, 0x00,
+                0x01, 0x08, 0x05, 0x05, 0x05, 0x05, 0x04, 0x00
+                };
+
+        ChannelBuffer buffer = ChannelBuffers.dynamicBuffer();
+        buffer.writeBytes(reportMsg);
+
+        PcepMessageReader<PcepMessage> reader = PcepFactories.getGenericReader();
+        PcepMessage message = reader.readFrom(buffer);
+
+        //PCC 1.1.1.1, D=0, ONOS as master
+        masterShipService.setMaster(true);
+        DefaultAnnotations.Builder newBuilder = DefaultAnnotations.builder();
+        newBuilder.set(PcepTunnelProvider.LSRID, "1.1.1.1");
+        newBuilder.set(AnnotationKeys.TYPE, "L3");
+        Device device = new DefaultDevice(ProviderId.NONE, DeviceId.deviceId("1.1.1.1"), ROUTER,
+                UNKOWN, UNKOWN, UNKOWN,
+                UNKOWN, new ChassisId(),
+                newBuilder.build());
+
+        deviceService.addDevice(device);
+        controller.getClient(PccId.pccId(IpAddress.valueOf("1.1.1.1"))).setCapability(
+                new ClientCapability(true, true, true, true, true));
+        controller.processClientMessage(PccId.pccId(IpAddress.valueOf("1.1.1.1")), message);
+        assertThat(tunnelService.tunnelIdAsKeyStore.values().iterator().next().annotations().value(DELEGATE),
+                is("false"));
+
+        //PCC 1.1.1.1, D=1, non-master
+        masterShipService.setMaster(false);
+
+        reportMsg = new byte[] {0x20, 0x0a, 0x00, (byte) 0x84,
+                0x21, 0x10, 0x00, 0x14,  0x00, 0x00, 0x00, 0x00,  0x00, 0x00, 0x00, 0x01, //SRP object
+                0x00, 0x1c, 0x00, 0x04, // PATH-SETUP-TYPE TLV
+                0x00, 0x00, 0x00, 0x02,
+                0x20, 0x10, 0x00, 0x24, 0x00, 0x00, 0x10, 0x03, //LSP object
+                0x00, 0x11, 0x00, 0x02, 0x54, 0x31, 0x00, 0x00, //symbolic path tlv
+                0x00, 0x12, 0x00, 0x10, // IPv4-LSP-IDENTIFIER-TLV
+                0x01, 0x01, 0x01, 0x01,
+                0x00, 0x01, 0x00, 0x01,
+                0x01, 0x01, 0x01, 0x01,
+                0x05, 0x05, 0x05, 0x05,
+
+                0x07, 0x10, 0x00, 0x14, //ERO object
+                0x01, 0x08, (byte) 0x01, 0x01, 0x01, 0x01, 0x04, 0x00, // ERO IPv4 sub objects
+                0x01, 0x08, (byte) 0x05, 0x05, 0x05, 0x05, 0x04, 0x00,
+
+                0x08, 0x10, 0x00, 0x34, //RRO object
+                0x01, 0x08, 0x11, 0x01, 0x01, 0x01, 0x04, 0x00, // RRO IPv4 sub objects
+                0x01, 0x08, 0x11, 0x01, 0x01, 0x02, 0x04, 0x00,
+                0x01, 0x08, 0x06, 0x06, 0x06, 0x06, 0x04, 0x00,
+                0x01, 0x08, 0x12, 0x01, 0x01, 0x02, 0x04, 0x00,
+                0x01, 0x08, 0x12, 0x01, 0x01, 0x01, 0x04, 0x00,
+                0x01, 0x08, 0x05, 0x05, 0x05, 0x05, 0x04, 0x00
+                };
+
+        buffer = ChannelBuffers.dynamicBuffer();
+        buffer.writeBytes(reportMsg);
+
+        reader = PcepFactories.getGenericReader();
+        message = reader.readFrom(buffer);
+
+        controller.processClientMessage(PccId.pccId(IpAddress.valueOf("1.1.1.1")), message);
+        TimeUnit.MILLISECONDS.sleep(4000);
+        assertThat(registry.tunnelIdCounter, is((long) 1));
+        assertThat(tunnelService.tunnelIdAsKeyStore.values().iterator().next().annotations().value(DELEGATE),
+                is("true"));
+    }
+
+    /**
      * Tests LSPDB sync where PCC reports less LSPs than known by PCE and PCE deletes at the end of DB sync.
      */
     @Test
@@ -355,8 +590,23 @@
         PcepMessageReader<PcepMessage> reader1 = PcepFactories.getGenericReader();
         PcepMessage message1 = reader1.readFrom(buffer1);
 
+        DefaultAnnotations.Builder newBuilder = DefaultAnnotations.builder();
+        newBuilder.set(PcepTunnelProvider.LSRID, "1.1.1.1");
+        newBuilder.set(AnnotationKeys.TYPE, "L3");
+        Device device = new DefaultDevice(ProviderId.NONE, DeviceId.deviceId("1.1.1.1"), ROUTER,
+                UNKOWN, UNKOWN, UNKOWN,
+                UNKOWN, new ChassisId(),
+                newBuilder.build());
+
+        deviceService.addDevice(device);
+
         PccId pccId = PccId.pccId(IpAddress.valueOf("1.1.1.1"));
-        controller.getClient(pccId).setCapability(new ClientCapability(true, true, true, false, false));
+        controller.getClient(pccId).setCapability(new ClientCapability(true, true, true, true, true));
+
+        PcepClientAdapter pc = new PcepClientAdapter();
+        pc.init(pccId, PcepVersion.PCEP_1);
+        controller.getClient(pccId).setLspAndDelegationInfo(new LspKey(2, (short) 2), true);
+        masterShipService.setMaster(true);
         controller.processClientMessage(pccId, message1);
 
         /* create 2nd LSP */
@@ -494,8 +744,24 @@
         PcepMessageReader<PcepMessage> reader1 = PcepFactories.getGenericReader();
         PcepMessage message1 = reader1.readFrom(buffer1);
 
+        DefaultAnnotations.Builder newBuilder = DefaultAnnotations.builder();
+        newBuilder.set(PcepTunnelProvider.LSRID, "1.1.1.1");
+        newBuilder.set(AnnotationKeys.TYPE, "L3");
+        Device device = new DefaultDevice(ProviderId.NONE, DeviceId.deviceId("1.1.1.1"), ROUTER,
+                UNKOWN, UNKOWN, UNKOWN,
+                UNKOWN, new ChassisId(),
+                newBuilder.build());
+
+        deviceService.addDevice(device);
+
         PccId pccId = PccId.pccId(IpAddress.valueOf("1.1.1.1"));
-        controller.getClient(pccId).setCapability(new ClientCapability(true, true, true, false, false));
+        controller.getClient(pccId).setCapability(new ClientCapability(true, true, true, true, true));
+
+        PcepClientAdapter pc = new PcepClientAdapter();
+        pc.init(pccId, PcepVersion.PCEP_1);
+        masterShipService.setMaster(true);
+        controller.getClient(pccId).setLspAndDelegationInfo(new LspKey(2, (short) 2), true);
+
         controller.processClientMessage(pccId, message1);
 
         /* create 2nd LSP */
@@ -604,6 +870,9 @@
         tunnelProvider.pcepTunnelApiMapper = null;
         tunnelProvider.cfgService = null;
         tunnelProvider.tunnelService = null;
+        tunnelProvider.tunnelAdminService = null;
+        tunnelProvider.deviceService = null;
+        tunnelProvider.mastershipService = null;
         tunnelProvider.service = null;
     }
 }
diff --git a/providers/pcep/tunnel/src/test/java/org/onosproject/provider/pcep/tunnel/impl/PcepTunnelProviderTest.java b/providers/pcep/tunnel/src/test/java/org/onosproject/provider/pcep/tunnel/impl/PcepTunnelProviderTest.java
index 2922537..e641c64 100644
--- a/providers/pcep/tunnel/src/test/java/org/onosproject/provider/pcep/tunnel/impl/PcepTunnelProviderTest.java
+++ b/providers/pcep/tunnel/src/test/java/org/onosproject/provider/pcep/tunnel/impl/PcepTunnelProviderTest.java
@@ -35,6 +35,7 @@
 import org.onosproject.incubator.net.tunnel.Tunnel;
 import org.onosproject.incubator.net.tunnel.TunnelId;
 import org.onosproject.incubator.net.tunnel.TunnelName;
+import org.onosproject.mastership.MastershipServiceAdapter;
 import org.onosproject.net.Annotations;
 import org.onosproject.net.ConnectPoint;
 import org.onosproject.net.DefaultAnnotations;
@@ -44,7 +45,10 @@
 import org.onosproject.net.Link;
 import org.onosproject.net.Path;
 import org.onosproject.net.PortNumber;
+import org.onosproject.net.device.DeviceServiceAdapter;
 import org.onosproject.net.provider.ProviderId;
+import org.onosproject.pcep.controller.ClientCapability;
+import org.onosproject.pcep.controller.PccId;
 import org.onosproject.cfg.ComponentConfigAdapter;
 
 public class PcepTunnelProviderTest {
@@ -55,6 +59,8 @@
     private final PcepClientControllerAdapter controller = new PcepClientControllerAdapter();
     private final PcepControllerAdapter ctl = new PcepControllerAdapter();
     private final TunnelServiceAdapter  tunnelService = new TunnelServiceAdapter();
+    private final DeviceServiceAdapter  deviceService = new DeviceServiceAdapter();
+    private final MastershipServiceAdapter  mastershipService = new MastershipServiceAdapter();
 
     @Test
     public void testCasePcepSetupTunnel() {
@@ -62,6 +68,8 @@
         tunnelProvider.tunnelProviderRegistry = registry;
         tunnelProvider.pcepClientController = controller;
         tunnelProvider.controller = ctl;
+        tunnelProvider.deviceService = deviceService;
+        tunnelProvider.mastershipService = mastershipService;
         tunnelProvider.cfgService = new ComponentConfigAdapter();
         tunnelProvider.tunnelService = tunnelService;
         tunnelProvider.activate();
@@ -99,6 +107,8 @@
         tunnel = new DefaultTunnel(pid, ipTunnelEndPointSrc, ipTunnelEndPointDst, Tunnel.Type.MPLS,
                                    new DefaultGroupId(0), TunnelId.valueOf("1"), TunnelName.tunnelName("T123"),
                                    path, annotations);
+        controller.getClient(PccId.pccId(IpAddress.valueOf(0xC010101))).setCapability(
+                new ClientCapability(true, true, true, true, true));
 
         tunnelProvider.setupTunnel(tunnel, path);
 
@@ -109,6 +119,8 @@
     public void tearDown() throws IOException {
         tunnelProvider.deactivate();
         tunnelProvider.controller = null;
+        tunnelProvider.deviceService = null;
+        tunnelProvider.mastershipService = null;
         tunnelProvider.pcepClientController = null;
         tunnelProvider.tunnelProviderRegistry = null;
     }
diff --git a/providers/pcep/tunnel/src/test/java/org/onosproject/provider/pcep/tunnel/impl/PcepUpdateTunnelProviderTest.java b/providers/pcep/tunnel/src/test/java/org/onosproject/provider/pcep/tunnel/impl/PcepUpdateTunnelProviderTest.java
index 2c9961f..4106dfb 100644
--- a/providers/pcep/tunnel/src/test/java/org/onosproject/provider/pcep/tunnel/impl/PcepUpdateTunnelProviderTest.java
+++ b/providers/pcep/tunnel/src/test/java/org/onosproject/provider/pcep/tunnel/impl/PcepUpdateTunnelProviderTest.java
@@ -47,6 +47,10 @@
 import org.onosproject.net.Path;
 import org.onosproject.net.PortNumber;
 import org.onosproject.net.provider.ProviderId;
+import org.onosproject.pcep.controller.ClientCapability;
+import org.onosproject.pcep.controller.LspKey;
+import org.onosproject.pcep.controller.PccId;
+import org.onosproject.pcepio.protocol.PcepVersion;
 import org.onosproject.pcepio.types.StatefulIPv4LspIdentifiersTlv;
 
 import static org.onosproject.provider.pcep.tunnel.impl.LspType.WITH_SIGNALLING;
@@ -99,7 +103,7 @@
 
         ConnectPoint src = new ConnectPoint(srcElementId, PortNumber.portNumber(10023));
 
-        ConnectPoint dst = new ConnectPoint(dstElementId, PortNumber.portNumber(10023));
+        ConnectPoint dst = new ConnectPoint(dstElementId, PortNumber.portNumber(10024));
 
         Link link = DefaultLink.builder().providerId(pid).src(src).dst(dst)
                 .type(Link.Type.DIRECT).build();
@@ -108,6 +112,8 @@
         path = new DefaultPath(pid, links, 20, EMPTY);
 
         Annotations annotations = DefaultAnnotations.builder()
+                .set(PcepAnnotationKeys.PLSP_ID, "1")
+                .set(PcepAnnotationKeys.LOCAL_LSP_ID, "1")
                 .set(LSP_SIG_TYPE, WITH_SIGNALLING.name())
                 .build();
 
@@ -124,6 +130,12 @@
 
         tunnelProvider.pcepTunnelApiMapper.handleCreateTunnelRequestQueue(1, pcepTunnelData);
 
+        PccId pccId = PccId.pccId(IpAddress.valueOf(0xD010101));
+        PcepClientAdapter pc = new PcepClientAdapter();
+        pc.init(pccId, PcepVersion.PCEP_1);
+        controller.getClient(pccId).setLspAndDelegationInfo(new LspKey(1, (short) 1), true);
+        controller.getClient(pccId).setCapability(new ClientCapability(true, true, true, true, true));
+
         tunnelProvider.updateTunnel(tunnel, path);
         assertThat(tunnelProvider.pcepTunnelApiMapper, not(nullValue()));
     }
@@ -137,7 +149,7 @@
         Path path;
         ProviderId pid = new ProviderId("pcep", PROVIDER_ID);
         List<Link> links = new ArrayList<>();
-        IpAddress srcIp = IpAddress.valueOf(0xC010103);
+        IpAddress srcIp = IpAddress.valueOf(0xD010101);
         IpElementId srcElementId = IpElementId.ipElement(srcIp);
 
         IpAddress dstIp = IpAddress.valueOf(0xD010102);
@@ -151,7 +163,7 @@
 
         ConnectPoint src = new ConnectPoint(srcElementId, PortNumber.portNumber(10023));
 
-        ConnectPoint dst = new ConnectPoint(dstElementId, PortNumber.portNumber(10023));
+        ConnectPoint dst = new ConnectPoint(dstElementId, PortNumber.portNumber(10024));
 
         Link link = DefaultLink.builder().providerId(pid).src(src).dst(dst)
                 .type(Link.Type.DIRECT).build();
@@ -161,6 +173,8 @@
 
         Annotations annotations = DefaultAnnotations.builder()
                 .set(LSP_SIG_TYPE, WITH_SIGNALLING.name())
+                .set(PcepAnnotationKeys.PLSP_ID, "1")
+                .set(PcepAnnotationKeys.LOCAL_LSP_ID, "1")
                 .build();
 
         tunnel = new DefaultTunnel(pid, ipTunnelEndPointSrc, ipTunnelEndPointDst, Tunnel.Type.MPLS,
@@ -176,6 +190,12 @@
 
         tunnelProvider.pcepTunnelApiMapper.handleCreateTunnelRequestQueue(1, pcepTunnelData);
 
+        PccId pccId = PccId.pccId(IpAddress.valueOf(0xD010101));
+        PcepClientAdapter pc = new PcepClientAdapter();
+        pc.init(pccId, PcepVersion.PCEP_1);
+        controller.getClient(pccId).setLspAndDelegationInfo(new LspKey(1, (short) 1), true);
+        controller.getClient(pccId).setCapability(new ClientCapability(true, true, true, true, true));
+
         tunnelProvider.updateTunnel(tunnel, path);
         assertThat(tunnelProvider.pcepTunnelApiMapper.checkFromTunnelRequestQueue(1), is(false));
     }
@@ -203,7 +223,7 @@
 
         ConnectPoint src = new ConnectPoint(srcElementId, PortNumber.portNumber(10023));
 
-        ConnectPoint dst = new ConnectPoint(dstElementId, PortNumber.portNumber(10023));
+        ConnectPoint dst = new ConnectPoint(dstElementId, PortNumber.portNumber(10024));
 
         Link link = DefaultLink.builder().providerId(pid).src(src).dst(dst)
                 .type(Link.Type.DIRECT).build();
@@ -213,6 +233,8 @@
 
         Annotations annotations = DefaultAnnotations.builder()
                 .set(LSP_SIG_TYPE, SR_WITHOUT_SIGNALLING.name())
+                .set(PcepAnnotationKeys.PLSP_ID, "1")
+                .set(PcepAnnotationKeys.LOCAL_LSP_ID, "1")
                 .build();
 
         tunnel = new DefaultTunnel(pid, ipTunnelEndPointSrc, ipTunnelEndPointDst, Tunnel.Type.MPLS,
@@ -228,6 +250,12 @@
 
         tunnelProvider.pcepTunnelApiMapper.handleCreateTunnelRequestQueue(1, pcepTunnelData);
 
+        PccId pccId = PccId.pccId(IpAddress.valueOf(0xD010101));
+        PcepClientAdapter pc = new PcepClientAdapter();
+        pc.init(pccId, PcepVersion.PCEP_1);
+        controller.getClient(pccId).setLspAndDelegationInfo(new LspKey(1, (short) 1), true);
+        controller.getClient(pccId).setCapability(new ClientCapability(true, true, true, true, true));
+
         tunnelProvider.updateTunnel(tunnel, path);
         assertThat(tunnelProvider.pcepTunnelApiMapper, not(nullValue()));
     }
@@ -255,7 +283,7 @@
 
         ConnectPoint src = new ConnectPoint(srcElementId, PortNumber.portNumber(10023));
 
-        ConnectPoint dst = new ConnectPoint(dstElementId, PortNumber.portNumber(10023));
+        ConnectPoint dst = new ConnectPoint(dstElementId, PortNumber.portNumber(10024));
 
         Link link = DefaultLink.builder().providerId(pid).src(src).dst(dst)
                 .type(Link.Type.DIRECT).build();
@@ -265,6 +293,8 @@
 
         Annotations annotations = DefaultAnnotations.builder()
                 .set(LSP_SIG_TYPE, WITHOUT_SIGNALLING_AND_WITHOUT_SR.name())
+                .set(PcepAnnotationKeys.PLSP_ID, "1")
+                .set(PcepAnnotationKeys.LOCAL_LSP_ID, "1")
                 .build();
 
         tunnel = new DefaultTunnel(pid, ipTunnelEndPointSrc, ipTunnelEndPointDst, Tunnel.Type.MPLS,
@@ -280,6 +310,12 @@
 
         tunnelProvider.pcepTunnelApiMapper.handleCreateTunnelRequestQueue(1, pcepTunnelData);
 
+        PccId pccId = PccId.pccId(IpAddress.valueOf(0xD010101));
+        PcepClientAdapter pc = new PcepClientAdapter();
+        pc.init(pccId, PcepVersion.PCEP_1);
+        controller.getClient(pccId).setLspAndDelegationInfo(new LspKey(1, (short) 1), true);
+        controller.getClient(pccId).setCapability(new ClientCapability(true, true, true, true, true));
+
         tunnelProvider.updateTunnel(tunnel, path);
         assertThat(tunnelProvider.pcepTunnelApiMapper, not(nullValue()));
     }