diff --git a/apps/openstacknetworking/app/src/main/java/org/onosproject/openstacknetworking/impl/InstancePortManager.java b/apps/openstacknetworking/app/src/main/java/org/onosproject/openstacknetworking/impl/InstancePortManager.java
new file mode 100644
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--- /dev/null
+++ b/apps/openstacknetworking/app/src/main/java/org/onosproject/openstacknetworking/impl/InstancePortManager.java
@@ -0,0 +1,268 @@
+/*
+ * Copyright 2018-present Open Networking Foundation
+ *
+ * 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 com.google.common.base.Strings;
+import com.google.common.collect.ImmutableSet;
+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.onlab.packet.IpAddress;
+import org.onlab.packet.MacAddress;
+import org.onosproject.core.CoreService;
+import org.onosproject.event.ListenerRegistry;
+import org.onosproject.net.Host;
+import org.onosproject.net.host.HostEvent;
+import org.onosproject.net.host.HostListener;
+import org.onosproject.net.host.HostService;
+import org.onosproject.openstacknetworking.api.Constants;
+import org.onosproject.openstacknetworking.api.InstancePort;
+import org.onosproject.openstacknetworking.api.InstancePortAdminService;
+import org.onosproject.openstacknetworking.api.InstancePortEvent;
+import org.onosproject.openstacknetworking.api.InstancePortListener;
+import org.onosproject.openstacknetworking.api.InstancePortService;
+import org.onosproject.openstacknetworking.api.InstancePortStore;
+import org.onosproject.openstacknetworking.api.InstancePortStoreDelegate;
+import org.slf4j.Logger;
+
+import java.util.Set;
+import java.util.stream.Collectors;
+
+import static com.google.common.base.Preconditions.checkArgument;
+import static com.google.common.base.Preconditions.checkNotNull;
+import static org.onosproject.openstacknetworking.api.InstancePort.State.ACTIVE;
+import static org.onosproject.openstacknetworking.impl.HostBasedInstancePort.ANNOTATION_NETWORK_ID;
+import static org.onosproject.openstacknetworking.impl.HostBasedInstancePort.ANNOTATION_PORT_ID;
+import static org.slf4j.LoggerFactory.getLogger;
+
+/**
+ * Provides implementation of administering and interfacing instance ports.
+ * It also provides instance port events for the hosts mapped to OpenStack VM interface.
+ */
+@Service
+@Component(immediate = false)
+public class InstancePortManager
+        extends ListenerRegistry<InstancePortEvent, InstancePortListener>
+        implements InstancePortService, InstancePortAdminService {
+
+    protected final Logger log = getLogger(getClass());
+
+    private static final String MSG_INSTANCE_PORT = "Instance port %s %s";
+    private static final String MSG_CREATED = "created";
+    private static final String MSG_UPDATED = "updated";
+    private static final String MSG_REMOVED = "removed";
+
+    private static final String ERR_NULL_INSTANCE_PORT = "Instance port cannot be null";
+    private static final String ERR_NULL_INSTANCE_PORT_ID = "Instance port ID cannot be null";
+    private static final String ERR_NULL_MAC_ADDRESS = "MAC address cannot be null";
+    private static final String ERR_NULL_IP_ADDRESS = "IP address cannot be null";
+    private static final String ERR_NULL_NETWORK_ID = "Network ID cannot be null";
+
+    private static final String ERR_IN_USE = " still in use";
+
+    @Reference(cardinality = ReferenceCardinality.MANDATORY_UNARY)
+    protected CoreService coreService;
+
+    @Reference(cardinality = ReferenceCardinality.MANDATORY_UNARY)
+    protected InstancePortStore instancePortStore;
+
+    @Reference(cardinality = ReferenceCardinality.MANDATORY_UNARY)
+    protected HostService hostService;
+
+    private final InstancePortStoreDelegate
+                            delegate = new InternalInstancePortStoreDelegate();
+    private final InternalHostListener
+                            hostListener = new InternalHostListener();
+
+    @Activate
+    protected void activate() {
+        coreService.registerApplication(Constants.OPENSTACK_NETWORKING_APP_ID);
+        instancePortStore.setDelegate(delegate);
+        hostService.addListener(hostListener);
+        log.info("Started");
+    }
+
+    @Deactivate
+    protected void deactivate() {
+        hostService.removeListener(hostListener);
+        instancePortStore.unsetDelegate(delegate);
+        log.info("Stopped");
+    }
+
+    @Override
+    public void createInstancePort(InstancePort instancePort) {
+        checkNotNull(instancePort, ERR_NULL_INSTANCE_PORT);
+        checkArgument(!Strings.isNullOrEmpty(instancePort.portId()),
+                                                    ERR_NULL_INSTANCE_PORT_ID);
+
+        instancePortStore.createInstancePort(instancePort);
+        log.info(String.format(MSG_INSTANCE_PORT, instancePort.portId(),
+                                                    MSG_CREATED));
+    }
+
+    @Override
+    public void updateInstancePort(InstancePort instancePort) {
+        checkNotNull(instancePort, ERR_NULL_INSTANCE_PORT);
+        checkArgument(!Strings.isNullOrEmpty(instancePort.portId()),
+                                                    ERR_NULL_INSTANCE_PORT_ID);
+
+        instancePortStore.updateInstancePort(instancePort);
+        log.info(String.format(MSG_INSTANCE_PORT, instancePort.portId(), MSG_UPDATED));
+    }
+
+    @Override
+    public void removeInstancePort(String portId) {
+        checkArgument(!Strings.isNullOrEmpty(portId), ERR_NULL_INSTANCE_PORT_ID);
+
+        synchronized (this) {
+            if (isInstancePortInUse(portId)) {
+                final String error =
+                            String.format(MSG_INSTANCE_PORT, portId, ERR_IN_USE);
+                throw new IllegalStateException(error);
+            }
+            InstancePort instancePort = instancePortStore.removeInstancePort(portId);
+            if (instancePort != null) {
+                log.info(String.format(MSG_INSTANCE_PORT, instancePort.portId(), MSG_REMOVED));
+            }
+        }
+    }
+
+    @Override
+    public void clear() {
+        instancePortStore.clear();
+    }
+
+    @Override
+    public InstancePort instancePort(MacAddress macAddress) {
+        checkNotNull(macAddress, ERR_NULL_MAC_ADDRESS);
+
+        return instancePortStore.instancePorts().stream()
+                .filter(port -> port.macAddress().equals(macAddress))
+                .findFirst().orElse(null);
+    }
+
+    @Override
+    public InstancePort instancePort(IpAddress ipAddress, String osNetId) {
+        checkNotNull(ipAddress, ERR_NULL_IP_ADDRESS);
+        checkNotNull(osNetId, ERR_NULL_NETWORK_ID);
+
+        return instancePortStore.instancePorts().stream()
+                .filter(port -> port.networkId().equals(osNetId))
+                .filter(port -> port.ipAddress().equals(ipAddress))
+                .findFirst().orElse(null);
+    }
+
+    @Override
+    public InstancePort instancePort(String portId) {
+        checkArgument(!Strings.isNullOrEmpty(portId), ERR_NULL_INSTANCE_PORT_ID);
+
+        return instancePortStore.instancePort(portId);
+    }
+
+    @Override
+    public Set<InstancePort> instancePorts() {
+        Set<InstancePort> ports = instancePortStore.instancePorts();
+
+        return ImmutableSet.copyOf(ports);
+    }
+
+    @Override
+    public Set<InstancePort> instancePorts(String osNetId) {
+        checkNotNull(osNetId, ERR_NULL_NETWORK_ID);
+
+        Set<InstancePort> ports = instancePortStore.instancePorts().stream()
+                                    .filter(port -> port.networkId().equals(osNetId))
+                                    .collect(Collectors.toSet());
+
+        return ImmutableSet.copyOf(ports);
+    }
+
+    @Override
+    public void migrationPortAdded(InstancePort port) {
+        // TODO need to be removed
+    }
+
+    @Override
+    public void migrationPortRemoved(InstancePort port) {
+        // TODO need to be removed
+    }
+
+    private boolean isInstancePortInUse(String portId) {
+        // TODO add checking logic
+        return false;
+    }
+
+    private class InternalInstancePortStoreDelegate implements InstancePortStoreDelegate {
+
+        @Override
+        public void notify(InstancePortEvent event) {
+            if (event != null) {
+                log.trace("send instance port event {}", event);
+                process(event);
+            }
+        }
+    }
+
+    /**
+     * An internal listener that listens host event generated by HostLocationTracker
+     * in DistributedHostStore. The role of this listener is to convert host event
+     * to instance port event and post to the subscribers that have interested on
+     * this type of event.
+     */
+    private class InternalHostListener implements HostListener {
+
+        @Override
+        public boolean isRelevant(HostEvent event) {
+            Host host = event.subject();
+            if (!isValidHost(host)) {
+                log.debug("Invalid host detected, ignore it {}", host);
+                return false;
+            }
+            return true;
+        }
+
+        @Override
+        public void event(HostEvent event) {
+            InstancePort instPort = DefaultInstancePort.from(event.subject(), ACTIVE);
+
+            switch (event.type()) {
+                case HOST_UPDATED:
+                    updateInstancePort(instPort);
+                    break;
+                case HOST_ADDED:
+                    createInstancePort(instPort);
+                    break;
+                case HOST_REMOVED:
+                    removeInstancePort(instPort.portId());
+                    break;
+                case HOST_MOVED:
+                    // TODO: require implementation for VM migration case
+                    break;
+                default:
+                    break;
+            }
+        }
+
+        private boolean isValidHost(Host host) {
+            return !host.ipAddresses().isEmpty() &&
+                    host.annotations().value(ANNOTATION_NETWORK_ID) != null &&
+                    host.annotations().value(ANNOTATION_PORT_ID) != null;
+        }
+    }
+}