diff --git a/apps/openstacknetworking/src/main/java/org/onosproject/openstacknetworking/api/OpenstackSecurityGroupService.java b/apps/openstacknetworking/src/main/java/org/onosproject/openstacknetworking/api/OpenstackSecurityGroupService.java
index c224ac6..98ac3b7 100644
--- a/apps/openstacknetworking/src/main/java/org/onosproject/openstacknetworking/api/OpenstackSecurityGroupService.java
+++ b/apps/openstacknetworking/src/main/java/org/onosproject/openstacknetworking/api/OpenstackSecurityGroupService.java
@@ -40,4 +40,18 @@
      * @return security group
      */
     SecurityGroup securityGroup(String sgId);
+
+    /**
+     * Returns whether security group is enabled or not.
+     *
+     * @return true security group is enabled, false otherwise
+     */
+    boolean isSecurityGroupEnabled();
+
+    /**
+     * Sets security group enable option.
+     *
+     * @param option security group enable option
+     */
+    void setSecurityGroupEnabled(boolean option);
 }
diff --git a/apps/openstacknetworking/src/main/java/org/onosproject/openstacknetworking/impl/OpenstackSecurityGroupHandler.java b/apps/openstacknetworking/src/main/java/org/onosproject/openstacknetworking/impl/OpenstackSecurityGroupHandler.java
index 23622f4..23beaf9 100644
--- a/apps/openstacknetworking/src/main/java/org/onosproject/openstacknetworking/impl/OpenstackSecurityGroupHandler.java
+++ b/apps/openstacknetworking/src/main/java/org/onosproject/openstacknetworking/impl/OpenstackSecurityGroupHandler.java
@@ -129,6 +129,7 @@
     @Reference(cardinality = ReferenceCardinality.MANDATORY_UNARY)
     protected OpenstackNodeService osNodeService;
 
+    @Reference(cardinality = ReferenceCardinality.MANDATORY_UNARY)
     protected DriverService driverService;
 
     @Reference(cardinality = ReferenceCardinality.MANDATORY_UNARY)
@@ -206,6 +207,7 @@
                     useSecurityGroup ? "enabled" : "disabled");
         }
 
+        securityGroupService.setSecurityGroupEnabled(useSecurityGroup);
         resetSecurityGroupRules();
     }
 
diff --git a/apps/openstacknetworking/src/main/java/org/onosproject/openstacknetworking/impl/OpenstackSecurityGroupManager.java b/apps/openstacknetworking/src/main/java/org/onosproject/openstacknetworking/impl/OpenstackSecurityGroupManager.java
index 2e5891d..f6a4de7 100644
--- a/apps/openstacknetworking/src/main/java/org/onosproject/openstacknetworking/impl/OpenstackSecurityGroupManager.java
+++ b/apps/openstacknetworking/src/main/java/org/onosproject/openstacknetworking/impl/OpenstackSecurityGroupManager.java
@@ -70,6 +70,8 @@
     private static final String ERR_NOT_FOUND = "not found";
     private static final String ERR_DUPLICATE = "already exist";
 
+    private boolean useSecurityGroup = false;
+
     @Reference(cardinality = ReferenceCardinality.MANDATORY_UNARY)
     protected CoreService coreService;
 
@@ -189,6 +191,16 @@
     }
 
     @Override
+    public boolean isSecurityGroupEnabled() {
+        return useSecurityGroup;
+    }
+
+    @Override
+    public void setSecurityGroupEnabled(boolean option) {
+        useSecurityGroup = option;
+    }
+
+    @Override
     public void clear() {
         osSecurityGroupStore.clear();
     }
diff --git a/apps/openstacknetworking/src/main/java/org/onosproject/openstacknetworking/impl/OpenstackSwitchingHandler.java b/apps/openstacknetworking/src/main/java/org/onosproject/openstacknetworking/impl/OpenstackSwitchingHandler.java
index 4622660..514425b 100644
--- a/apps/openstacknetworking/src/main/java/org/onosproject/openstacknetworking/impl/OpenstackSwitchingHandler.java
+++ b/apps/openstacknetworking/src/main/java/org/onosproject/openstacknetworking/impl/OpenstackSwitchingHandler.java
@@ -43,6 +43,7 @@
 import org.onosproject.openstacknetworking.api.OpenstackNetworkEvent;
 import org.onosproject.openstacknetworking.api.OpenstackNetworkListener;
 import org.onosproject.openstacknetworking.api.OpenstackNetworkService;
+import org.onosproject.openstacknetworking.api.OpenstackSecurityGroupService;
 import org.onosproject.openstacknode.api.OpenstackNode;
 import org.onosproject.openstacknode.api.OpenstackNodeService;
 import org.openstack4j.model.network.Network;
@@ -54,7 +55,6 @@
 
 import static java.util.concurrent.Executors.newSingleThreadExecutor;
 import static org.onlab.util.Tools.groupedThreads;
-
 import static org.onosproject.openstacknetworking.api.Constants.ACL_TABLE;
 import static org.onosproject.openstacknetworking.api.Constants.FORWARDING_TABLE;
 import static org.onosproject.openstacknetworking.api.Constants.OPENSTACK_NETWORKING_APP_ID;
@@ -108,6 +108,9 @@
     @Reference(cardinality = ReferenceCardinality.MANDATORY_UNARY)
     protected DriverService driverService;
 
+    @Reference(cardinality = ReferenceCardinality.MANDATORY_UNARY)
+    protected OpenstackSecurityGroupService securityGroupService;
+
     private final ExecutorService eventExecutor = newSingleThreadExecutor(
             groupedThreads(this.getClass().getSimpleName(), "event-handler"));
     private final InstancePortListener instancePortListener = new InternalInstancePortListener();
@@ -254,17 +257,19 @@
                 RulePopulatorUtil.niciraConnTrackTreatmentBuilder(driverService, instPort.deviceId())
                         .commit(true).build();
 
-        TrafficTreatment treatment = DefaultTrafficTreatment.builder()
+        TrafficTreatment.Builder tb = DefaultTrafficTreatment.builder()
                 .setTunnelId(getVni(instPort))
-                .transition(ACL_TABLE)
-                .extension(ctTreatment, instPort.deviceId())
-                .build();
+                .transition(ACL_TABLE);
+
+        if (securityGroupService.isSecurityGroupEnabled()) {
+            tb.extension(ctTreatment, instPort.deviceId());
+        }
 
         osFlowRuleService.setRule(
                 appId,
                 instPort.deviceId(),
                 selector,
-                treatment,
+                tb.build(),
                 PRIORITY_TUNNEL_TAG_RULE,
                 SRC_VNI_TABLE,
                 install);