diff --git a/apps/segmentrouting/src/main/java/org/onosproject/segmentrouting/NetworkConfigEventHandler.java b/apps/segmentrouting/src/main/java/org/onosproject/segmentrouting/NetworkConfigEventHandler.java
new file mode 100644
index 0000000..afb7ec9
--- /dev/null
+++ b/apps/segmentrouting/src/main/java/org/onosproject/segmentrouting/NetworkConfigEventHandler.java
@@ -0,0 +1,156 @@
+package org.onosproject.segmentrouting;
+
+import com.google.common.collect.ImmutableSet;
+import org.onlab.packet.MacAddress;
+import org.onosproject.net.DeviceId;
+import org.onosproject.net.PortNumber;
+import org.onosproject.net.config.NetworkConfigEvent;
+import org.onosproject.net.device.DeviceService;
+import org.onosproject.net.flow.criteria.Criteria;
+import org.onosproject.net.flowobjective.DefaultFilteringObjective;
+import org.onosproject.net.flowobjective.FilteringObjective;
+import org.onosproject.segmentrouting.config.DeviceConfigNotFoundException;
+import org.onosproject.segmentrouting.config.SegmentRoutingAppConfig;
+import org.slf4j.Logger;
+import org.slf4j.LoggerFactory;
+
+import java.util.HashSet;
+import java.util.Set;
+
+/**
+ * Handles network config events.
+ */
+public class NetworkConfigEventHandler {
+    private static final Logger log = LoggerFactory.getLogger(NetworkConfigEventHandler.class);
+    private final SegmentRoutingManager srManager;
+    private final DeviceService deviceService;
+
+    /**
+     * Constructs Network Config Event Handler.
+     *
+     * @param srManager instance of {@link SegmentRoutingManager}
+     */
+    public NetworkConfigEventHandler(SegmentRoutingManager srManager) {
+        this.srManager = srManager;
+        this.deviceService = srManager.deviceService;
+    }
+
+    /**
+     * Processes vRouter config added event.
+     *
+     * @param event network config added event
+     */
+    protected void processVRouterConfigAdded(NetworkConfigEvent event) {
+        log.info("Processing vRouter CONFIG_ADDED");
+        SegmentRoutingAppConfig config = (SegmentRoutingAppConfig) event.config().get();
+        deviceService.getAvailableDevices().forEach(device -> {
+            populateVRouter(device.id(), getMacAddresses(config));
+        });
+    }
+
+    /**
+     * Processes vRouter config updated event.
+     *
+     * @param event network config updated event
+     */
+    protected void processVRouterConfigUpdated(NetworkConfigEvent event) {
+        log.info("Processing vRouter CONFIG_UPDATED");
+        SegmentRoutingAppConfig config = (SegmentRoutingAppConfig) event.config().get();
+        SegmentRoutingAppConfig prevConfig = (SegmentRoutingAppConfig) event.prevConfig().get();
+        deviceService.getAvailableDevices().forEach(device -> {
+            Set<MacAddress> macAddresses = getMacAddresses(config);
+            Set<MacAddress> prevMacAddresses = getMacAddresses(prevConfig);
+            // Avoid removing and re-adding unchanged MAC addresses since
+            // FlowObjective does not guarantee the execution order.
+            Set<MacAddress> sameMacAddresses = new HashSet<>(macAddresses);
+            sameMacAddresses.retainAll(prevMacAddresses);
+            macAddresses.removeAll(sameMacAddresses);
+            prevMacAddresses.removeAll(sameMacAddresses);
+
+            revokeVRouter(device.id(), prevMacAddresses);
+            populateVRouter(device.id(), macAddresses);
+        });
+
+    }
+
+    /**
+     * Processes vRouter config removed event.
+     *
+     * @param event network config removed event
+     */
+    protected void processVRouterConfigRemoved(NetworkConfigEvent event) {
+        log.info("Processing vRouter CONFIG_REMOVED");
+        SegmentRoutingAppConfig prevConfig = (SegmentRoutingAppConfig) event.prevConfig().get();
+        deviceService.getAvailableDevices().forEach(device -> {
+            revokeVRouter(device.id(), getMacAddresses(prevConfig));
+        });
+    }
+
+    /**
+     * Populates initial vRouter rules.
+     *
+     * @param deviceId device ID
+     */
+    public void initVRouters(DeviceId deviceId) {
+        SegmentRoutingAppConfig config =
+                srManager.cfgService.getConfig(srManager.appId, SegmentRoutingAppConfig.class);
+        populateVRouter(deviceId, getMacAddresses(config));
+    }
+
+    private void populateVRouter(DeviceId deviceId, Set<MacAddress> pendingAdd) {
+        if (!isEdge(deviceId)) {
+            return;
+        }
+        getVRouterFlowObjBuilders(pendingAdd).forEach(foBuilder -> {
+            srManager.flowObjectiveService.
+                    filter(deviceId, foBuilder.add(new SRObjectiveContext(deviceId,
+                            SRObjectiveContext.ObjectiveType.FILTER)));
+        });
+    }
+
+    private void revokeVRouter(DeviceId deviceId, Set<MacAddress> pendingRemove) {
+        if (!isEdge(deviceId)) {
+            return;
+        }
+        getVRouterFlowObjBuilders(pendingRemove).forEach(foBuilder -> {
+            srManager.flowObjectiveService.
+                    filter(deviceId, foBuilder.remove(new SRObjectiveContext(deviceId,
+                            SRObjectiveContext.ObjectiveType.FILTER)));
+        });
+    }
+
+    private Set<FilteringObjective.Builder> getVRouterFlowObjBuilders(Set<MacAddress> macAddresses) {
+        ImmutableSet.Builder<FilteringObjective.Builder> setBuilder = ImmutableSet.builder();
+        macAddresses.forEach(macAddress -> {
+            FilteringObjective.Builder fobuilder = DefaultFilteringObjective.builder();
+            fobuilder.withKey(Criteria.matchInPort(PortNumber.ANY))
+                    .addCondition(Criteria.matchEthDst(macAddress))
+                    .permit()
+                    .withPriority(SegmentRoutingService.DEFAULT_PRIORITY)
+                    .fromApp(srManager.appId);
+            setBuilder.add(fobuilder);
+        });
+        return setBuilder.build();
+    }
+
+    private Set<MacAddress> getMacAddresses(SegmentRoutingAppConfig config) {
+        if (config == null) {
+            return ImmutableSet.of();
+        }
+
+        HashSet<MacAddress> macAddresses = new HashSet<>();
+        config.vRouterMacs().forEach(mac -> {
+            macAddresses.add(mac);
+        });
+        return ImmutableSet.copyOf(macAddresses);
+    }
+
+    private boolean isEdge(DeviceId deviceId) {
+        try {
+            if (srManager.deviceConfiguration.isEdgeDevice(deviceId)) {
+                return true;
+            }
+        } catch (DeviceConfigNotFoundException e) { }
+        return false;
+    }
+}