diff --git a/neutron/plugins/ml2/drivers/openvswitch/agent/ovs_neutron_agent.py b/neutron/plugins/ml2/drivers/openvswitch/agent/ovs_neutron_agent.py
index fc2b3ff50d8..d4ba19bfac7 100644
--- a/neutron/plugins/ml2/drivers/openvswitch/agent/ovs_neutron_agent.py
+++ b/neutron/plugins/ml2/drivers/openvswitch/agent/ovs_neutron_agent.py
@@ -321,7 +321,7 @@ class OVSNeutronAgent(l2population_rpc.L2populationRpcCallBackTunnelMixin,
 
             # we only want to update resource versions on startup
             self.agent_state.pop('resource_versions', None)
-            if self.agent_state.pop('start_flag', None):
+            if self.agent_state.pop('start_flag', None) and self.iter_num == 0:
                 # On initial start, we notify systemd after initialization
                 # is complete.
                 systemd.notify_once()
@@ -2025,6 +2025,7 @@ class OVSNeutronAgent(l2population_rpc.L2populationRpcCallBackTunnelMixin,
                     self._reset_tunnel_ofports()
                     self.setup_tunnel_br()
                     self.setup_tunnel_br_flows()
+                    self.agent_state['start_flag'] = True
                     tunnel_sync = True
                 if self.enable_distributed_routing:
                     self.dvr_agent.reset_ovs_parameters(self.int_br,
diff --git a/neutron/tests/unit/plugins/ml2/drivers/openvswitch/agent/test_ovs_neutron_agent.py b/neutron/tests/unit/plugins/ml2/drivers/openvswitch/agent/test_ovs_neutron_agent.py
index 3445e83b352..e8847d141c8 100644
--- a/neutron/tests/unit/plugins/ml2/drivers/openvswitch/agent/test_ovs_neutron_agent.py
+++ b/neutron/tests/unit/plugins/ml2/drivers/openvswitch/agent/test_ovs_neutron_agent.py
@@ -1963,6 +1963,10 @@ class TestOvsNeutronAgent(object):
                 failed_devices,
                 Exception('Fake exception to get out of the loop')]
             check_ovs_status.side_effect = args
+
+            if self.agent.enable_tunneling:
+                self.agent.agent_state.pop("start_flag")
+
             try:
                 self.agent.daemon_loop()
             except Exception:
@@ -1992,6 +1996,8 @@ class TestOvsNeutronAgent(object):
             self.assertTrue(reset_tunnel_ofports.called)
             self.assertTrue(setup_tunnel_br_flows.called)
             self.assertTrue(setup_tunnel_br.called)
+            if self.agent.enable_tunneling:
+                self.assertTrue(self.agent.agent_state.get('start_flag'))
 
     def test_ovs_status(self):
         self._test_ovs_status(constants.OVS_NORMAL,