diff --git a/ansible/roles/openvswitch/defaults/main.yml b/ansible/roles/openvswitch/defaults/main.yml
index b22283050d..f07c37e2e5 100644
--- a/ansible/roles/openvswitch/defaults/main.yml
+++ b/ansible/roles/openvswitch/defaults/main.yml
@@ -75,4 +75,4 @@ openvswitch_vswitchd_extra_volumes: "{{ openvswitch_extra_volumes }}"
 # OpenvSwitch
 #############
 
-openvswitch_system_id: "{{ inventory_hostname_short }}"
+openvswitch_system_id: "{{ ansible_hostname }}"
diff --git a/releasenotes/notes/bug-1884734-ec054799d3300778.yaml b/releasenotes/notes/bug-1884734-ec054799d3300778.yaml
new file mode 100644
index 0000000000..ac7da0997e
--- /dev/null
+++ b/releasenotes/notes/bug-1884734-ec054799d3300778.yaml
@@ -0,0 +1,10 @@
+---
+fixes:
+  - |
+    Fixes an issue when using ip addresses instead of hostnames in Ansible
+    inventory. OpenvSwitch role sets system-id based on inventory_hostname,
+    which in case of ip addresses in is first ip octet.
+    Such a deployment would result in multiple OVN chassis with duplicate name
+    e.g. "10" connecting to OVN Southbound database - which spawns high numbers
+    of create/delete events in Encap database table - leading to near 100% CPU
+    usage of OVN/OVS/Neutron processes.
diff --git a/zuul.d/base.yaml b/zuul.d/base.yaml
index 6ac0cc215d..100cb7a330 100644
--- a/zuul.d/base.yaml
+++ b/zuul.d/base.yaml
@@ -168,7 +168,7 @@
     parent: kolla-ansible-base
     voting: false
     files:
-      - ^ansible/roles/(ovn|neutron)/
+      - ^ansible/roles/(neutron|openvswitch|ovn)/
       - ^tests/test-ovn.sh
       - ^tests/test-core-openstack.sh
     vars: