diff --git a/apps/openstacknetworking/src/main/java/org/onosproject/openstacknetworking/api/Constants.java b/apps/openstacknetworking/src/main/java/org/onosproject/openstacknetworking/api/Constants.java
index a1d5ace..f42923c 100644
--- a/apps/openstacknetworking/src/main/java/org/onosproject/openstacknetworking/api/Constants.java
+++ b/apps/openstacknetworking/src/main/java/org/onosproject/openstacknetworking/api/Constants.java
@@ -41,4 +41,9 @@
     public static final int PRIORITY_SWITCHING_RULE = 30000;
     public static final int PRIORITY_ACL_RULE = 30000;
 
+    public static final int SRC_VNI_TABLE = 0;
+    public static final int ACL_TABLE = 1;
+    public static final int JUMP_TABLE = 2;
+    public static final int ROUTING_TABLE = 3;
+    public static final int FORWARDING_TABLE = 4;
 }
\ No newline at end of file
diff --git a/apps/openstacknetworking/src/main/java/org/onosproject/openstacknetworking/api/OpenstackFlowRuleService.java b/apps/openstacknetworking/src/main/java/org/onosproject/openstacknetworking/api/OpenstackFlowRuleService.java
new file mode 100644
index 0000000..01da935
--- /dev/null
+++ b/apps/openstacknetworking/src/main/java/org/onosproject/openstacknetworking/api/OpenstackFlowRuleService.java
@@ -0,0 +1,36 @@
+/*
+ * 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.api;
+
+
+import org.onosproject.net.DeviceId;
+import org.onosproject.net.flowobjective.ForwardingObjective;
+
+/**
+ * Service for setting flow rules.
+ *
+ */
+public interface OpenstackFlowRuleService {
+
+    /**
+     * Sets flow rules.
+     *
+     * @param deviceId Device ID
+     * @param forwardingObjective flow rule container
+     * @param tableType table type for the flow rules
+     */
+    void forward(DeviceId deviceId, ForwardingObjective forwardingObjective, int tableType);
+}
diff --git a/apps/openstacknetworking/src/main/java/org/onosproject/openstacknetworking/impl/OpenstackFlowRuleManager.java b/apps/openstacknetworking/src/main/java/org/onosproject/openstacknetworking/impl/OpenstackFlowRuleManager.java
new file mode 100644
index 0000000..6e8e7e0
--- /dev/null
+++ b/apps/openstacknetworking/src/main/java/org/onosproject/openstacknetworking/impl/OpenstackFlowRuleManager.java
@@ -0,0 +1,258 @@
+/*
+ * 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 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.onosproject.core.ApplicationId;
+import org.onosproject.core.CoreService;
+import org.onosproject.net.DeviceId;
+import org.onosproject.net.flow.DefaultFlowRule;
+import org.onosproject.net.flow.DefaultTrafficSelector;
+import org.onosproject.net.flow.DefaultTrafficTreatment;
+import org.onosproject.net.flow.FlowRule;
+import org.onosproject.net.flow.FlowRuleOperations;
+import org.onosproject.net.flow.FlowRuleOperationsContext;
+import org.onosproject.net.flow.FlowRuleService;
+import org.onosproject.net.flow.TrafficSelector;
+import org.onosproject.net.flow.TrafficTreatment;
+import org.onosproject.net.flow.instructions.Instruction;
+import org.onosproject.net.flowobjective.ForwardingObjective;
+import org.onosproject.net.flowobjective.Objective;
+import org.onosproject.openstacknetworking.api.Constants;
+import org.onosproject.openstacknetworking.api.OpenstackFlowRuleService;
+import org.onosproject.openstacknode.OpenstackNode;
+import org.onosproject.openstacknode.OpenstackNodeEvent;
+import org.onosproject.openstacknode.OpenstackNodeListener;
+import org.onosproject.openstacknode.OpenstackNodeService;
+import org.slf4j.Logger;
+
+import java.util.concurrent.ExecutorService;
+import java.util.concurrent.Executors;
+
+import static org.onlab.util.Tools.groupedThreads;
+import static org.onosproject.openstacknetworking.api.Constants.OPENSTACK_NETWORKING_APP_ID;
+import static org.slf4j.LoggerFactory.getLogger;
+
+/**
+ * Sets flow rules directly using FlowRuleService.
+ */
+@Service
+@Component(immediate = true)
+public class OpenstackFlowRuleManager implements OpenstackFlowRuleService {
+
+    private final Logger log = getLogger(getClass());
+
+    private static final int DROP_PRIORITY = 0;
+    private static final int HIGH_PRIORITY = 30000;
+    private static final int FLOW_RULE_TIME_OUT = 60;
+
+    @Reference(cardinality = ReferenceCardinality.MANDATORY_UNARY)
+    protected FlowRuleService flowRuleService;
+
+    @Reference(cardinality = ReferenceCardinality.MANDATORY_UNARY)
+    protected CoreService coreService;
+
+    @Reference(cardinality = ReferenceCardinality.MANDATORY_UNARY)
+    protected OpenstackNodeService osNodeService;
+
+    private final ExecutorService deviceEventExecutor =
+            Executors.newSingleThreadExecutor(groupedThreads("openstacknetworking", "device-event"));
+    private final InternalOpenstackNodeListener internalNodeListener = new InternalOpenstackNodeListener();
+
+    private ApplicationId appId;
+
+    @Activate
+    protected void activate() {
+        appId = coreService.registerApplication(OPENSTACK_NETWORKING_APP_ID);
+        coreService.registerApplication(OPENSTACK_NETWORKING_APP_ID);
+        osNodeService.addListener(internalNodeListener);
+
+        log.info("Started");
+    }
+
+    @Deactivate
+    protected void deactivate() {
+        osNodeService.removeListener(internalNodeListener);
+        deviceEventExecutor.shutdown();
+
+        log.info("Stopped");
+    }
+
+    @Override
+    public void forward(DeviceId deviceId, ForwardingObjective forwardingObjective, int tableType) {
+        TrafficTreatment.Builder treatment = DefaultTrafficTreatment.builder();
+
+        forwardingObjective.treatment().allInstructions().stream()
+                .filter(i -> i.type() != Instruction.Type.NOACTION).forEach(treatment::add);
+
+        FlowRule.Builder ruleBuilder = DefaultFlowRule.builder()
+                .forDevice(deviceId)
+                .withSelector(forwardingObjective.selector())
+                .withTreatment(treatment.build())
+                .withPriority(forwardingObjective.priority())
+                .fromApp(forwardingObjective.appId())
+                .forTable(tableType);
+
+        if (forwardingObjective.permanent()) {
+            ruleBuilder.makePermanent();
+        } else {
+            ruleBuilder.makeTemporary(FLOW_RULE_TIME_OUT);
+        }
+
+        if (forwardingObjective.op().equals(Objective.Operation.ADD)) {
+            applyRules(true, ruleBuilder.build());
+        } else {
+            applyRules(false, ruleBuilder.build());
+        }
+    }
+
+    private void applyRules(boolean install, FlowRule flowRule) {
+        FlowRuleOperations.Builder flowOpsBuilder = FlowRuleOperations.builder();
+
+        flowOpsBuilder = install ? flowOpsBuilder.add(flowRule) : flowOpsBuilder.remove(flowRule);
+
+        flowRuleService.apply(flowOpsBuilder.build(new FlowRuleOperationsContext() {
+            @Override
+            public void onSuccess(FlowRuleOperations ops) {
+                log.debug("Provisioned vni or forwarding table");
+            }
+
+            @Override
+            public void onError(FlowRuleOperations ops) {
+                log.debug("Failed to privision vni or forwarding table");
+            }
+        }));
+    }
+
+    private void initializePipeline(DeviceId deviceId) {
+        connectTables(deviceId, Constants.SRC_VNI_TABLE, Constants.ACL_TABLE);
+        connectTables(deviceId, Constants.ACL_TABLE, Constants.JUMP_TABLE);
+        setUpTableMissEntry(deviceId, Constants.ACL_TABLE);
+        setupJumpTable(deviceId);
+    }
+
+    private void connectTables(DeviceId deviceId, int fromTable, int toTable) {
+        TrafficSelector.Builder selector = DefaultTrafficSelector.builder();
+        TrafficTreatment.Builder treatment = DefaultTrafficTreatment.builder();
+
+        treatment.transition(toTable);
+
+        FlowRule flowRule = DefaultFlowRule.builder()
+                .forDevice(deviceId)
+                .withSelector(selector.build())
+                .withTreatment(treatment.build())
+                .withPriority(DROP_PRIORITY)
+                .fromApp(appId)
+                .makePermanent()
+                .forTable(fromTable)
+                .build();
+
+        applyRules(true, flowRule);
+    }
+
+    private void setUpTableMissEntry(DeviceId deviceId, int table) {
+        TrafficSelector.Builder selector = DefaultTrafficSelector.builder();
+        TrafficTreatment.Builder treatment = DefaultTrafficTreatment.builder();
+
+        treatment.drop();
+
+        FlowRule flowRule = DefaultFlowRule.builder()
+                .forDevice(deviceId)
+                .withSelector(selector.build())
+                .withTreatment(treatment.build())
+                .withPriority(DROP_PRIORITY)
+                .fromApp(appId)
+                .makePermanent()
+                .forTable(table)
+                .build();
+
+        applyRules(true, flowRule);
+    }
+
+    private void setupJumpTable(DeviceId deviceId) {
+        TrafficSelector.Builder selector = DefaultTrafficSelector.builder();
+        TrafficTreatment.Builder treatment = DefaultTrafficTreatment.builder();
+
+        selector.matchEthDst(Constants.DEFAULT_GATEWAY_MAC);
+        treatment.transition(Constants.ROUTING_TABLE);
+
+        FlowRule flowRule = DefaultFlowRule.builder()
+                .forDevice(deviceId)
+                .withSelector(selector.build())
+                .withTreatment(treatment.build())
+                .withPriority(HIGH_PRIORITY)
+                .fromApp(appId)
+                .makePermanent()
+                .forTable(Constants.JUMP_TABLE)
+                .build();
+
+        applyRules(true, flowRule);
+
+        selector = DefaultTrafficSelector.builder();
+        treatment = DefaultTrafficTreatment.builder();
+
+        treatment.transition(Constants.FORWARDING_TABLE);
+
+        flowRule = DefaultFlowRule.builder()
+                .forDevice(deviceId)
+                .withSelector(selector.build())
+                .withTreatment(treatment.build())
+                .withPriority(DROP_PRIORITY)
+                .fromApp(appId)
+                .makePermanent()
+                .forTable(Constants.JUMP_TABLE)
+                .build();
+
+        applyRules(true, flowRule);
+    }
+
+    private class InternalOpenstackNodeListener implements OpenstackNodeListener {
+
+        @Override
+        public void event(OpenstackNodeEvent event) {
+            OpenstackNode osNode = event.subject();
+            // TODO check leadership of the node and make only the leader process
+
+            switch (event.type()) {
+                case COMPLETE:
+                    deviceEventExecutor.execute(() -> {
+                        log.info("COMPLETE node {} is detected", osNode.hostname());
+
+                    });
+                    break;
+                case INCOMPLETE:
+                    log.warn("{} is changed to INCOMPLETE state", osNode);
+                    break;
+                case INIT:
+                case DEVICE_CREATED:
+                default:
+                    break;
+            }
+        }
+
+        private void processCompleteNode(OpenstackNode osNode) {
+            if (osNode.type().equals(OpenstackNodeService.NodeType.COMPUTE)) {
+                initializePipeline(osNode.intBridge());
+            }
+        }
+    }
+}