diff --git a/puppet/services/kernel.yaml b/puppet/services/kernel.yaml
index 011ec03732..1c2da401d4 100644
--- a/puppet/services/kernel.yaml
+++ b/puppet/services/kernel.yaml
@@ -60,6 +60,11 @@ parameters:
                  ARP cache. The garbage collector will always run if there
                  are more than this number of entries in the cache.
     type: number
+  InotifyIntancesMax:
+    default: 1024
+    description: Configures sysctl fs.inotify.max_user_instances key
+    type: number
+
 
 outputs:
   role_data:
@@ -129,5 +134,9 @@ outputs:
             value: {get_param: NeighbourGcThreshold2}
           net.ipv4.neigh.default.gc_thresh3:
             value: {get_param: NeighbourGcThreshold3}
+          # set inotify value for neutron/dnsmasq scale
+          fs.inotify.max_user_instances:
+            value: {get_param: InotifyIntancesMax}
+
       step_config: |
         include ::tripleo::profile::base::kernel