diff --git a/etc/neutron/plugins/ml2/linuxbridge_agent.ini b/etc/neutron/plugins/ml2/linuxbridge_agent.ini
index 2ea019ed620..ee89ebe038a 100644
--- a/etc/neutron/plugins/ml2/linuxbridge_agent.ini
+++ b/etc/neutron/plugins/ml2/linuxbridge_agent.ini
@@ -40,6 +40,11 @@
 # iproute2 supports unicast flooding - requires 3.11 kernel and iproute2 3.10)
 # l2_population = False
 
+# (BoolOpt) Flag to disable local ARP responder which provides local responses
+# instead of performing ARP broadcast into the overlay. Enabling local ARP
+# responder is not fully compatible with the allowed-address-pairs extension.
+# arp_responder = True
+
 [agent]
 # Agent's polling interval in seconds
 # polling_interval = 2
diff --git a/neutron/plugins/ml2/drivers/linuxbridge/agent/common/config.py b/neutron/plugins/ml2/drivers/linuxbridge/agent/common/config.py
index bb2c43d0035..1db42fb1adf 100644
--- a/neutron/plugins/ml2/drivers/linuxbridge/agent/common/config.py
+++ b/neutron/plugins/ml2/drivers/linuxbridge/agent/common/config.py
@@ -41,6 +41,12 @@ vxlan_opts = [
                 help=_("Extension to use alongside ml2 plugin's l2population "
                        "mechanism driver. It enables the plugin to populate "
                        "VXLAN forwarding table.")),
+    cfg.BoolOpt('arp_responder', default=True,
+                help=_("Enable local ARP responder which provides local "
+                       "responses instead of performing ARP broadcast into "
+                       "the overlay. Enabling local ARP responder is not fully"
+                       "compatible with the allowed-address-pairs extension.")
+                ),
 ]
 
 bridge_opts = [
diff --git a/neutron/plugins/ml2/drivers/linuxbridge/agent/linuxbridge_neutron_agent.py b/neutron/plugins/ml2/drivers/linuxbridge/agent/linuxbridge_neutron_agent.py
index 960f9007498..5e0b1ed7248 100644
--- a/neutron/plugins/ml2/drivers/linuxbridge/agent/linuxbridge_neutron_agent.py
+++ b/neutron/plugins/ml2/drivers/linuxbridge/agent/linuxbridge_neutron_agent.py
@@ -320,7 +320,7 @@ class LinuxBridgeManager(object):
             if cfg.CONF.VXLAN.tos:
                 args['tos'] = cfg.CONF.VXLAN.tos
             if cfg.CONF.VXLAN.l2_population:
-                args['proxy'] = True
+                args['proxy'] = cfg.CONF.VXLAN.arp_responder
             try:
                 int_vxlan = self.ip.add_vxlan(interface, segmentation_id,
                                               **args)
diff --git a/neutron/tests/unit/plugins/ml2/drivers/linuxbridge/agent/test_linuxbridge_neutron_agent.py b/neutron/tests/unit/plugins/ml2/drivers/linuxbridge/agent/test_linuxbridge_neutron_agent.py
index 1544824b878..8bcc92d321f 100644
--- a/neutron/tests/unit/plugins/ml2/drivers/linuxbridge/agent/test_linuxbridge_neutron_agent.py
+++ b/neutron/tests/unit/plugins/ml2/drivers/linuxbridge/agent/test_linuxbridge_neutron_agent.py
@@ -738,7 +738,7 @@ class TestLinuxBridgeManager(base.BaseTestCase):
                 self.assertIsNone(self.lbm.ensure_vlan("eth0", "1"))
                 self.assertEqual(exec_fn.call_count, 3)
 
-    def test_ensure_vxlan(self):
+    def test_ensure_vxlan(self, expected_proxy=True):
         seg_id = "12345678"
         self.lbm.local_int = 'eth0'
         self.lbm.vxlan_mode = lconst.VXLAN_MCAST
@@ -760,7 +760,11 @@ class TestLinuxBridgeManager(base.BaseTestCase):
                 add_vxlan_fn.assert_called_with("vxlan-" + seg_id, seg_id,
                                                 group="224.0.0.1",
                                                 dev=self.lbm.local_int,
-                                                proxy=True)
+                                                proxy=expected_proxy)
+
+    def test_ensure_vxlan_arp_responder_disabled(self):
+        cfg.CONF.set_override('arp_responder', False, 'VXLAN')
+        self.test_ensure_vxlan(expected_proxy=False)
 
     def test_update_interface_ip_details(self):
         gwdict = dict(gateway='1.1.1.1',
diff --git a/releasenotes/notes/linuxbridge_vxlan_arp_responder-e9ea91552e1b62a7.yaml b/releasenotes/notes/linuxbridge_vxlan_arp_responder-e9ea91552e1b62a7.yaml
new file mode 100644
index 00000000000..a036c37d551
--- /dev/null
+++ b/releasenotes/notes/linuxbridge_vxlan_arp_responder-e9ea91552e1b62a7.yaml
@@ -0,0 +1,7 @@
+---
+fixes:
+    The Linuxbridge agent now supports the ability to toggle the local ARP
+    responder when L2Population is enabled. This ensures compatibility with
+    the allowed-address-pairs extension.
+  - closes bug 1445089
+