diff --git a/apps/openstacknetworking/src/main/java/org/onosproject/openstacknetworking/impl/HostBasedInstancePortManager.java b/apps/openstacknetworking/src/main/java/org/onosproject/openstacknetworking/impl/HostBasedInstancePortManager.java
new file mode 100644
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+++ b/apps/openstacknetworking/src/main/java/org/onosproject/openstacknetworking/impl/HostBasedInstancePortManager.java
@@ -0,0 +1,173 @@
+/*
+ * Copyright 2017-present Open Networking Laboratory
+ *
+ * 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.openstacknetworking.impl;
+
+import com.google.common.collect.ImmutableSet;
+import org.apache.felix.scr.annotations.Activate;
+import org.apache.felix.scr.annotations.Component;
+import org.apache.felix.scr.annotations.Deactivate;
+import org.apache.felix.scr.annotations.Reference;
+import org.apache.felix.scr.annotations.ReferenceCardinality;
+import org.apache.felix.scr.annotations.Service;
+import org.onlab.packet.IpAddress;
+import org.onlab.packet.MacAddress;
+import org.onlab.util.Tools;
+import org.onosproject.event.ListenerRegistry;
+import org.onosproject.net.Host;
+import org.onosproject.net.HostId;
+import org.onosproject.net.host.HostEvent;
+import org.onosproject.net.host.HostListener;
+import org.onosproject.net.host.HostService;
+import org.onosproject.openstacknetworking.api.InstancePort;
+import org.onosproject.openstacknetworking.api.InstancePortEvent;
+import org.onosproject.openstacknetworking.api.InstancePortListener;
+import org.onosproject.openstacknetworking.api.InstancePortService;
+import org.slf4j.Logger;
+
+import java.util.Set;
+import java.util.stream.Collectors;
+
+import static org.onosproject.openstacknetworking.api.InstancePortEvent.Type.OPENSTACK_INSTANCE_PORT_DETECTED;
+import static org.onosproject.openstacknetworking.api.InstancePortEvent.Type.OPENSTACK_INSTANCE_PORT_UPDATED;
+import static org.onosproject.openstacknetworking.api.InstancePortEvent.Type.OPENSTACK_INSTANCE_PORT_VANISHED;
+import static org.onosproject.openstacknetworking.impl.HostBasedInstancePort.ANNOTATION_NETWORK_ID;
+import static org.onosproject.openstacknetworking.impl.HostBasedInstancePort.ANNOTATION_PORT_ID;
+import static org.slf4j.LoggerFactory.getLogger;
+
+/**
+ * Provides implementation of administering and interfacing host based instance ports.
+ * It also provides instance port events for the hosts mapped to OpenStack VM interface.
+ */
+@Service
+@Component(immediate = true)
+public class HostBasedInstancePortManager
+        extends ListenerRegistry<InstancePortEvent, InstancePortListener>
+        implements InstancePortService {
+
+    protected final Logger log = getLogger(getClass());
+
+    @Reference(cardinality = ReferenceCardinality.MANDATORY_UNARY)
+    protected HostService hostService;
+
+    private final HostListener hostListener = new InternalHostListener();
+
+    @Activate
+    protected void activate() {
+        hostService.addListener(hostListener);
+        log.info("Started");
+    }
+
+    @Deactivate
+    protected void deactivate() {
+        hostService.removeListener(hostListener);
+        log.info("Stopped");
+    }
+
+    @Override
+    public InstancePort instancePort(MacAddress macAddress) {
+        Host host = hostService.getHost(HostId.hostId(macAddress));
+        if (host == null || !isValidHost(host)) {
+            return null;
+        }
+        return HostBasedInstancePort.of(host);
+    }
+
+    @Override
+    public InstancePort instancePort(IpAddress ipAddress, String osNetId) {
+        return Tools.stream(hostService.getHosts()).filter(this::isValidHost)
+                .map(HostBasedInstancePort::of)
+                .filter(instPort -> instPort.networkId().equals(osNetId))
+                .filter(instPort -> instPort.ipAddress().equals(ipAddress))
+                .findAny().orElse(null);
+    }
+
+    @Override
+    public InstancePort instancePort(String osPortId) {
+        return Tools.stream(hostService.getHosts()).filter(this::isValidHost)
+                .map(HostBasedInstancePort::of)
+                .filter(instPort -> instPort.portId().equals(osPortId))
+                .findAny().orElse(null);
+    }
+
+    @Override
+    public Set<InstancePort> instancePorts() {
+        Set<InstancePort> instPors = Tools.stream(hostService.getHosts())
+                .filter(this::isValidHost)
+                .map(HostBasedInstancePort::of)
+                .collect(Collectors.toSet());
+        return ImmutableSet.copyOf(instPors);
+    }
+
+    @Override
+    public Set<InstancePort> instancePorts(String osNetId) {
+        Set<InstancePort> instPors = Tools.stream(hostService.getHosts())
+                .filter(this::isValidHost)
+                .map(HostBasedInstancePort::of)
+                .filter(instPort -> instPort.networkId().equals(osNetId))
+                .collect(Collectors.toSet());
+        return ImmutableSet.copyOf(instPors);
+    }
+
+    private boolean isValidHost(Host host) {
+        return !host.ipAddresses().isEmpty() &&
+                host.annotations().value(ANNOTATION_NETWORK_ID) != null &&
+                host.annotations().value(ANNOTATION_PORT_ID) != null;
+    }
+
+    private class InternalHostListener implements HostListener {
+
+        @Override
+        public boolean isRelevant(HostEvent event) {
+            Host host = event.subject();
+            if (!isValidHost(host)) {
+                log.debug("Invalid host detected, ignore it {}", host);
+                return false;
+            }
+            return true;
+        }
+
+        @Override
+        public void event(HostEvent event) {
+            InstancePort instPort = HostBasedInstancePort.of(event.subject());
+            InstancePortEvent instPortEvent;
+            switch (event.type()) {
+                case HOST_UPDATED:
+                    instPortEvent = new InstancePortEvent(
+                            OPENSTACK_INSTANCE_PORT_UPDATED,
+                            instPort);
+                    log.debug("Instance port is updated: {}", instPort);
+                    process(instPortEvent);
+                    break;
+                case HOST_ADDED:
+                    instPortEvent = new InstancePortEvent(
+                            OPENSTACK_INSTANCE_PORT_DETECTED,
+                            instPort);
+                    log.debug("Instance port is detected: {}", instPort);
+                    process(instPortEvent);
+                    break;
+                case HOST_REMOVED:
+                    instPortEvent = new InstancePortEvent(
+                            OPENSTACK_INSTANCE_PORT_VANISHED,
+                            instPort);
+                    log.debug("Instance port is disabled: {}", instPort);
+                    process(instPortEvent);
+                    break;
+                default:
+                    break;
+            }
+        }
+    }
+}