diff --git a/apps/reactive-routing/pom.xml b/apps/reactive-routing/pom.xml
index d7bde79..a5059ca 100644
--- a/apps/reactive-routing/pom.xml
+++ b/apps/reactive-routing/pom.xml
@@ -41,6 +41,11 @@
       <artifactId>onos-app-routing</artifactId>
       <version>${project.version}</version>
     </dependency>
+
+    <dependency>
+      <groupId>org.onosproject</groupId>
+      <artifactId>onos-api</artifactId>
+    </dependency>
   </dependencies>
 
 </project>
\ No newline at end of file
diff --git a/apps/reactive-routing/src/main/java/org/onosproject/reactive/routing/SdnIpReactiveRouting.java b/apps/reactive-routing/src/main/java/org/onosproject/reactive/routing/SdnIpReactiveRouting.java
index a74387f..46f7fd9 100644
--- a/apps/reactive-routing/src/main/java/org/onosproject/reactive/routing/SdnIpReactiveRouting.java
+++ b/apps/reactive-routing/src/main/java/org/onosproject/reactive/routing/SdnIpReactiveRouting.java
@@ -16,13 +16,17 @@
 package org.onosproject.reactive.routing;
 import static org.slf4j.LoggerFactory.getLogger;
 
+import java.nio.ByteBuffer;
+
 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.onlab.packet.ARP;
 import org.onlab.packet.Ethernet;
 import org.onlab.packet.IPv4;
+import org.onlab.packet.Ip4Address;
 import org.onlab.packet.IpAddress;
 import org.onlab.packet.MacAddress;
 import org.onosproject.core.ApplicationId;
@@ -40,6 +44,7 @@
 import org.onosproject.net.packet.PacketProcessor;
 import org.onosproject.net.packet.PacketService;
 import org.onosproject.routing.RoutingService;
+import org.onosproject.routing.config.RoutingConfigurationService;
 import org.slf4j.Logger;
 
 /**
@@ -64,6 +69,9 @@
     @Reference(cardinality = ReferenceCardinality.MANDATORY_UNARY)
     protected RoutingService routingService;
 
+    @Reference(cardinality = ReferenceCardinality.MANDATORY_UNARY)
+    protected RoutingConfigurationService config;
+
     private ApplicationId appId;
 
     private ReactiveRoutingProcessor processor =
@@ -80,6 +88,9 @@
         selector.matchEthType(Ethernet.TYPE_IPV4);
         packetService.requestPackets(selector.build(),
                                      PacketPriority.REACTIVE, appId);
+        selector.matchEthType(Ethernet.TYPE_ARP);
+        packetService.requestPackets(selector.build(),
+                                     PacketPriority.REACTIVE, appId);
 
         log.info("SDN-IP Reactive Routing Started");
     }
@@ -100,31 +111,56 @@
             if (ethPkt == null) {
                 return;
             }
-
-            // In theory, we do not need to check whether it is Ethernet
-            // TYPE_IPV4. However, due to the current implementation of the
-            // packetService, we will receive all packets from all subscribers.
-            // Hence, we have to check the Ethernet type again here.
-            if (ethPkt.getEtherType() != Ethernet.TYPE_IPV4) {
-                return;
-            }
-
-            // Parse packet
-            IPv4 ipv4Packet = (IPv4) ethPkt.getPayload();
-            IpAddress dstIp =
-                    IpAddress.valueOf(ipv4Packet.getDestinationAddress());
-            IpAddress srcIp =
-                    IpAddress.valueOf(ipv4Packet.getSourceAddress());
             ConnectPoint srcConnectPoint = pkt.receivedFrom();
-            MacAddress srcMac = ethPkt.getSourceMAC();
-            routingService.packetReactiveProcessor(dstIp, srcIp,
-                                                   srcConnectPoint, srcMac);
 
-            // TODO emit packet first or packetReactiveProcessor first
-            ConnectPoint egressConnectPoint = null;
-            egressConnectPoint = routingService.getEgressConnectPoint(dstIp);
-            if (egressConnectPoint != null) {
-                forwardPacketToDst(context, egressConnectPoint);
+            switch (ethPkt.getEtherType()) {
+            case Ethernet.TYPE_ARP:
+                ARP arpPacket = (ARP) ethPkt.getPayload();
+                Ip4Address targetIpAddress = Ip4Address
+                        .valueOf(arpPacket.getTargetProtocolAddress());
+                // Only when it is an ARP request packet and the target IP
+                // address is a virtual gateway IP address, then it will be
+                // processed.
+                if (arpPacket.getOpCode() == ARP.OP_REQUEST
+                        && config.isVirtualGatewayIpAddress(targetIpAddress)) {
+                    MacAddress gatewayMacAddress =
+                            config.getVirtualGatewayMacAddress();
+                    if (gatewayMacAddress == null) {
+                        break;
+                    }
+                    Ethernet eth = ARP.buildArpReply(targetIpAddress,
+                                                     gatewayMacAddress,
+                                                     ethPkt);
+
+                    TrafficTreatment.Builder builder =
+                            DefaultTrafficTreatment.builder();
+                    builder.setOutput(srcConnectPoint.port());
+                    packetService.emit(new DefaultOutboundPacket(
+                            srcConnectPoint.deviceId(),
+                            builder.build(),
+                            ByteBuffer.wrap(eth.serialize())));
+                }
+                break;
+            case Ethernet.TYPE_IPV4:
+                // Parse packet
+                IPv4 ipv4Packet = (IPv4) ethPkt.getPayload();
+                IpAddress dstIp =
+                        IpAddress.valueOf(ipv4Packet.getDestinationAddress());
+                IpAddress srcIp =
+                        IpAddress.valueOf(ipv4Packet.getSourceAddress());
+                MacAddress srcMac = ethPkt.getSourceMAC();
+                routingService.packetReactiveProcessor(dstIp, srcIp,
+                                                       srcConnectPoint, srcMac);
+
+                // TODO emit packet first or packetReactiveProcessor first
+                ConnectPoint egressConnectPoint = null;
+                egressConnectPoint = routingService.getEgressConnectPoint(dstIp);
+                if (egressConnectPoint != null) {
+                    forwardPacketToDst(context, egressConnectPoint);
+                }
+                break;
+            default:
+                break;
             }
         }
     }
diff --git a/apps/routing-api/src/main/java/org/onosproject/routing/config/LocalIpPrefixEntry.java b/apps/routing-api/src/main/java/org/onosproject/routing/config/LocalIpPrefixEntry.java
index a2f3c8c..3f62db4 100644
--- a/apps/routing-api/src/main/java/org/onosproject/routing/config/LocalIpPrefixEntry.java
+++ b/apps/routing-api/src/main/java/org/onosproject/routing/config/LocalIpPrefixEntry.java
@@ -20,6 +20,7 @@
 
 import java.util.Objects;
 
+import org.onlab.packet.IpAddress;
 import org.onlab.packet.IpPrefix;
 
 /**
@@ -28,6 +29,7 @@
 public class LocalIpPrefixEntry {
     private final IpPrefix ipPrefix;
     private final IpPrefixType type;
+    private final IpAddress gatewayIpAddress;
 
     /**
      * Specifies the type of local IP prefix.
@@ -55,9 +57,12 @@
      * @param type an IP prefix type as an IpPrefixType
      */
     public LocalIpPrefixEntry(@JsonProperty("ipPrefix") String ipPrefix,
-                              @JsonProperty("type") IpPrefixType type) {
+                              @JsonProperty("type") IpPrefixType type,
+                              @JsonProperty("gatewayIp") IpAddress
+                              gatewayIpAddress) {
         this.ipPrefix = IpPrefix.valueOf(ipPrefix);
         this.type = type;
+        this.gatewayIpAddress = gatewayIpAddress;
     }
 
     /**
@@ -79,6 +84,15 @@
     }
 
     /**
+     * Gets the gateway IP address of the IP prefix entry.
+     *
+     * @return the gateway IP address
+     */
+    public IpAddress getGatewayIpAddress() {
+        return gatewayIpAddress;
+    }
+
+    /**
      * Tests whether the IP version of this entry is IPv4.
      *
      * @return true if the IP version of this entry is IPv4, otherwise false.
diff --git a/apps/routing-api/src/main/java/org/onosproject/routing/config/RoutingConfigurationService.java b/apps/routing-api/src/main/java/org/onosproject/routing/config/RoutingConfigurationService.java
index a306328..a500ff4 100644
--- a/apps/routing-api/src/main/java/org/onosproject/routing/config/RoutingConfigurationService.java
+++ b/apps/routing-api/src/main/java/org/onosproject/routing/config/RoutingConfigurationService.java
@@ -17,6 +17,7 @@
 
 import org.onlab.packet.IpAddress;
 import org.onlab.packet.IpPrefix;
+import org.onlab.packet.MacAddress;
 import org.onosproject.net.ConnectPoint;
 
 import java.util.Map;
@@ -42,6 +43,21 @@
     public Map<IpAddress, BgpPeer> getBgpPeers();
 
     /**
+     * Gets the MAC address configured for virtual gateway in SDN network.
+     *
+     * @return the MAC address of virtual gateway
+     */
+    public MacAddress getVirtualGatewayMacAddress();
+
+    /**
+     * Evaluates whether an IP address is a virtual gateway IP address.
+     *
+     * @param ipAddress the IP address to evaluate
+     * @return true if the IP address is a virtual gateway address, otherwise false
+     */
+    public boolean isVirtualGatewayIpAddress(IpAddress ipAddress);
+
+    /**
      * Evaluates whether an IP address belongs to local SDN network.
      *
      * @param ipAddress the IP address to evaluate
diff --git a/apps/routing/src/main/java/org/onosproject/routing/config/impl/Configuration.java b/apps/routing/src/main/java/org/onosproject/routing/config/impl/Configuration.java
index 76f1df0..d5a9e29 100644
--- a/apps/routing/src/main/java/org/onosproject/routing/config/impl/Configuration.java
+++ b/apps/routing/src/main/java/org/onosproject/routing/config/impl/Configuration.java
@@ -17,6 +17,7 @@
 
 import com.fasterxml.jackson.annotation.JsonProperty;
 
+import org.onlab.packet.MacAddress;
 import org.onosproject.routing.config.BgpPeer;
 import org.onosproject.routing.config.BgpSpeaker;
 import org.onosproject.routing.config.LocalIpPrefixEntry;
@@ -33,6 +34,7 @@
     // the BGP routers outside our SDN network the BGP peers.
     private List<BgpSpeaker> bgpSpeakers;
     private List<BgpPeer> peers;
+    private MacAddress virtualGatewayMacAddress;
 
     // All IP prefixes from the configuration are local
     private List<LocalIpPrefixEntry> localIp4PrefixEntries =
@@ -77,7 +79,7 @@
     }
 
     /**
-     * Sets a list of BGP peers we are configured to peer with.
+     * Sets a list of BGP peers we configured to peer with.
      *
      * @param peers the list of BGP peers
      */
@@ -87,6 +89,26 @@
     }
 
     /**
+     * Gets the MAC address we configured for virtual gateway
+     * in SDN network.
+     *
+     * @return the MAC address of virtual gateway
+     */
+    public MacAddress getVirtualGatewayMacAddress() {
+        return virtualGatewayMacAddress;
+    }
+
+    /**
+     * Sets the MAC address for virtual gateway in SDN network.
+     *
+     * @param virtualGatewayMacAddress the MAC address of virtual gateway
+     */
+    @JsonProperty("virtualGatewayMacAddress")
+    public void setVirtualGatewayMacAddress(MacAddress virtualGatewayMacAddress) {
+        this.virtualGatewayMacAddress = virtualGatewayMacAddress;
+    }
+
+    /**
      * Gets a list of local IPv4 prefix entries configured for local
      * SDN network.
      * <p>
diff --git a/apps/routing/src/main/java/org/onosproject/routing/config/impl/RoutingConfigurationImpl.java b/apps/routing/src/main/java/org/onosproject/routing/config/impl/RoutingConfigurationImpl.java
index abb6a13..c45d286 100644
--- a/apps/routing/src/main/java/org/onosproject/routing/config/impl/RoutingConfigurationImpl.java
+++ b/apps/routing/src/main/java/org/onosproject/routing/config/impl/RoutingConfigurationImpl.java
@@ -29,6 +29,7 @@
 import org.onlab.packet.Ip6Address;
 import org.onlab.packet.IpAddress;
 import org.onlab.packet.IpPrefix;
+import org.onlab.packet.MacAddress;
 import org.onosproject.net.ConnectPoint;
 import org.onosproject.net.host.HostService;
 import org.onosproject.routing.config.BgpPeer;
@@ -43,6 +44,7 @@
 import java.io.FileNotFoundException;
 import java.io.IOException;
 import java.util.Collections;
+import java.util.HashSet;
 import java.util.Map;
 import java.util.Set;
 import java.util.concurrent.ConcurrentHashMap;
@@ -68,6 +70,7 @@
 
     private Map<String, BgpSpeaker> bgpSpeakers = new ConcurrentHashMap<>();
     private Map<IpAddress, BgpPeer> bgpPeers = new ConcurrentHashMap<>();
+    private Set<IpAddress> gatewayIpAddresses = new HashSet<>();
 
     private InvertedRadixTree<LocalIpPrefixEntry>
             localPrefixTable4 = new ConcurrentInvertedRadixTree<>(
@@ -76,6 +79,7 @@
             localPrefixTable6 = new ConcurrentInvertedRadixTree<>(
                     new DefaultByteArrayNodeFactory());
 
+    private MacAddress virtualGatewayMacAddress;
     private HostToInterfaceAdaptor hostAdaptor;
 
     @Activate
@@ -109,12 +113,16 @@
             for (LocalIpPrefixEntry entry : config.getLocalIp4PrefixEntries()) {
                 localPrefixTable4.put(createBinaryString(entry.ipPrefix()),
                                       entry);
+                gatewayIpAddresses.add(entry.getGatewayIpAddress());
             }
             for (LocalIpPrefixEntry entry : config.getLocalIp6PrefixEntries()) {
                 localPrefixTable6.put(createBinaryString(entry.ipPrefix()),
                                       entry);
+                gatewayIpAddresses.add(entry.getGatewayIpAddress());
             }
 
+            virtualGatewayMacAddress = config.getVirtualGatewayMacAddress();
+
         } catch (FileNotFoundException e) {
             log.warn("Configuration file not found: {}", configFileName);
         } catch (IOException e) {
@@ -178,4 +186,14 @@
                 createBinaryString(ipPrefix)) != null);
     }
 
+    @Override
+    public boolean isVirtualGatewayIpAddress(IpAddress ipAddress) {
+        return gatewayIpAddresses.contains(ipAddress);
+    }
+
+    @Override
+    public MacAddress getVirtualGatewayMacAddress() {
+        return virtualGatewayMacAddress;
+    }
+
 }
diff --git a/apps/sdnip/src/main/resources/config-examples/sdnip.json b/apps/sdnip/src/main/resources/config-examples/sdnip.json
index 913687e..c51de68 100644
--- a/apps/sdnip/src/main/resources/config-examples/sdnip.json
+++ b/apps/sdnip/src/main/resources/config-examples/sdnip.json
@@ -66,17 +66,21 @@
     "ip4LocalPrefixes" : [
         {
                 "ipPrefix" : "100.0.0.0/24",
-                "type" : "PUBLIC"
+                "type" : "PUBLIC",
+                "gatewayIp" : "100.0.0.1"
         },
         {
                 "ipPrefix" : "200.0.0.0/8",
-                "type" : "PUBLIC"
+                "type" : "PUBLIC",
+                "gatewayIp" : "200.0.0.3"
         },
         {
                 "ipPrefix" : "192.0.0.0/24",
-                "type" : "PRIVATE"
+                "type" : "PRIVATE",
+                "gatewayIp" : "192.0.0.254"
         }
     ],
     "ip6LocalPrefixes" : [
-    ]
+    ],
+    "virtualGatewayMacAddress" : "00:00:00:00:00:01"
 }