diff --git a/apps/kubevirt-networking/app/src/main/java/org/onosproject/kubevirtnetworking/impl/KubevirtSwitchingPhysicalHandler.java b/apps/kubevirt-networking/app/src/main/java/org/onosproject/kubevirtnetworking/impl/KubevirtSwitchingPhysicalHandler.java
new file mode 100644
index 0000000..96a31da
--- /dev/null
+++ b/apps/kubevirt-networking/app/src/main/java/org/onosproject/kubevirtnetworking/impl/KubevirtSwitchingPhysicalHandler.java
@@ -0,0 +1,182 @@
+/*
+ * Copyright 2021-present Open Networking Foundation
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package org.onosproject.kubevirtnetworking.impl;
+
+import org.onosproject.cluster.ClusterService;
+import org.onosproject.cluster.LeadershipService;
+import org.onosproject.core.ApplicationId;
+import org.onosproject.core.CoreService;
+import org.onosproject.kubevirtnetworking.api.KubevirtFlowRuleService;
+import org.onosproject.kubevirtnode.api.KubevirtNode;
+import org.onosproject.kubevirtnode.api.KubevirtNodeService;
+import org.onosproject.mastership.MastershipService;
+import org.onosproject.net.DeviceId;
+import org.onosproject.net.Port;
+import org.onosproject.net.PortNumber;
+import org.onosproject.net.device.DeviceEvent;
+import org.onosproject.net.device.DeviceListener;
+import org.onosproject.net.device.DeviceService;
+import org.onosproject.net.driver.DriverService;
+import org.onosproject.net.flow.DefaultTrafficSelector;
+import org.onosproject.net.flow.DefaultTrafficTreatment;
+import org.onosproject.net.flow.TrafficSelector;
+import org.onosproject.net.flow.TrafficTreatment;
+import org.osgi.service.component.annotations.Activate;
+import org.osgi.service.component.annotations.Component;
+import org.osgi.service.component.annotations.Deactivate;
+import org.osgi.service.component.annotations.Reference;
+import org.osgi.service.component.annotations.ReferenceCardinality;
+import org.slf4j.Logger;
+
+import java.util.Set;
+import java.util.concurrent.ExecutorService;
+import java.util.stream.Collectors;
+
+import static java.util.concurrent.Executors.newSingleThreadExecutor;
+import static org.onlab.util.Tools.groupedThreads;
+import static org.onosproject.kubevirtnetworking.api.Constants.KUBEVIRT_NETWORKING_APP_ID;
+import static org.onosproject.kubevirtnetworking.api.Constants.PRE_FLAT_TABLE;
+import static org.onosproject.kubevirtnetworking.api.Constants.PRIORITY_SWITCHING_RULE;
+import static org.onosproject.kubevirtnetworking.api.Constants.VTAG_TABLE;
+import static org.onosproject.kubevirtnetworking.util.KubevirtNetworkingUtil.structurePortName;
+import static org.onosproject.kubevirtnode.api.Constants.INTEGRATION_TO_PHYSICAL_PREFIX;
+import static org.onosproject.net.AnnotationKeys.PORT_NAME;
+import static org.slf4j.LoggerFactory.getLogger;
+
+/**
+ * Populates switching flow rules on OVS for the physical interfaces.
+ */
+@Component(immediate = true)
+public class KubevirtSwitchingPhysicalHandler {
+    private final Logger log = getLogger(getClass());
+
+    @Reference(cardinality = ReferenceCardinality.MANDATORY)
+    protected CoreService coreService;
+    @Reference(cardinality = ReferenceCardinality.MANDATORY)
+    protected MastershipService mastershipService;
+    @Reference(cardinality = ReferenceCardinality.MANDATORY)
+    protected DeviceService deviceService;
+    @Reference(cardinality = ReferenceCardinality.MANDATORY)
+    protected DriverService driverService;
+    @Reference(cardinality = ReferenceCardinality.MANDATORY)
+    protected ClusterService clusterService;
+    @Reference(cardinality = ReferenceCardinality.MANDATORY)
+    protected LeadershipService leadershipService;
+    @Reference(cardinality = ReferenceCardinality.MANDATORY)
+    protected KubevirtFlowRuleService flowRuleService;
+    @Reference(cardinality = ReferenceCardinality.MANDATORY)
+    protected KubevirtNodeService nodeService;
+
+    private final ExecutorService eventExecutor = newSingleThreadExecutor(
+            groupedThreads(this.getClass().getSimpleName(), "event-handler"));
+    private final InternalDeviceListener internalDeviceListener = new InternalDeviceListener();
+    private ApplicationId appId;
+
+    @Activate
+    protected void activate() {
+        appId = coreService.registerApplication(KUBEVIRT_NETWORKING_APP_ID);
+        deviceService.addListener(internalDeviceListener);
+        log.info("Started");
+    }
+
+    @Deactivate
+    protected void deactivate() {
+        eventExecutor.shutdown();
+        deviceService.removeListener(internalDeviceListener);
+        log.info("Stopped");
+    }
+
+    private boolean containsPhyPatchPort(KubevirtNode node, Port port) {
+        Set<String> intPatchPorts = node.phyIntfs().stream()
+                .map(pi -> structurePortName(INTEGRATION_TO_PHYSICAL_PREFIX
+                        + pi.network())).collect(Collectors.toSet());
+        String portName = port.annotations().value(PORT_NAME);
+        return intPatchPorts.contains(portName);
+    }
+
+    private void setFlatJumpRuleForPatchPort(DeviceId deviceId,
+                                             PortNumber portNumber,
+                                             boolean install) {
+        TrafficSelector.Builder selector = DefaultTrafficSelector.builder()
+                .matchInPort(portNumber);
+
+        TrafficTreatment.Builder treatment = DefaultTrafficTreatment.builder()
+                .transition(PRE_FLAT_TABLE);
+
+        flowRuleService.setRule(
+                appId,
+                deviceId,
+                selector.build(),
+                treatment.build(),
+                PRIORITY_SWITCHING_RULE,
+                VTAG_TABLE,
+                install);
+    }
+
+    private class InternalDeviceListener implements DeviceListener {
+
+        @Override
+        public boolean isRelevant(DeviceEvent event) {
+            Port port = event.port();
+            if (port == null) {
+                return false;
+            }
+
+            KubevirtNode node = nodeService.node(event.subject().id());
+            if (node == null) {
+                return false;
+            }
+
+            return containsPhyPatchPort(node, port);
+        }
+
+        private boolean isRelevantHelper(DeviceEvent event) {
+            return mastershipService.isLocalMaster(event.subject().id());
+        }
+
+        @Override
+        public void event(DeviceEvent event) {
+            log.info("Device event occurred with type {}", event.type());
+
+            switch (event.type()) {
+                case PORT_ADDED:
+                case PORT_UPDATED:
+                    eventExecutor.execute(() -> processPortAddition(event));
+                    break;
+                case PORT_REMOVED:
+                    eventExecutor.execute(() -> processPortRemoval(event));
+                    break;
+                default:
+                    break;
+            }
+        }
+
+        private void processPortAddition(DeviceEvent event) {
+            if (!isRelevantHelper(event)) {
+                return;
+            }
+            setFlatJumpRuleForPatchPort(event.subject().id(),
+                    event.port().number(), true);
+        }
+        private void processPortRemoval(DeviceEvent event) {
+            if (!isRelevantHelper(event)) {
+                return;
+            }
+            setFlatJumpRuleForPatchPort(event.subject().id(),
+                    event.port().number(), false);
+        }
+    }
+}