diff --git a/apps/openstacknetworking/app/src/main/java/org/onosproject/openstacknetworking/impl/OpenstackSwitchingArpHandler.java b/apps/openstacknetworking/app/src/main/java/org/onosproject/openstacknetworking/impl/OpenstackSwitchingArpHandler.java
index 8c6d1d9..c730647 100644
--- a/apps/openstacknetworking/app/src/main/java/org/onosproject/openstacknetworking/impl/OpenstackSwitchingArpHandler.java
+++ b/apps/openstacknetworking/app/src/main/java/org/onosproject/openstacknetworking/impl/OpenstackSwitchingArpHandler.java
@@ -944,6 +944,11 @@
         }
 
         private void setVnetArpRule(Network network, boolean install) {
+
+            if (ARP_PROXY_MODE.equals(getArpMode())) {
+                return;
+            }
+
             String netId = network.getId();
             NetworkType netType = network.getNetworkType();