diff --git a/compute.yaml b/compute.yaml
index 169e9cf2a1..9a2c6f17ba 100644
--- a/compute.yaml
+++ b/compute.yaml
@@ -132,7 +132,7 @@ parameters:
   NeutronNetworkType:
     type: string
     description: The tenant network type for Neutron, either gre or vxlan.
-    default: 'gre'
+    default: 'vxlan'
   NeutronNetworkVLANRanges:
     default: 'datacentre'
     description: >
@@ -158,7 +158,7 @@ parameters:
     description: |
         The tunnel types for the Neutron tenant network. To specify multiple
         values, use a comma separated string, like so: 'gre,vxlan'
-    default: 'gre'
+    default: 'vxlan'
   NeutronTunnelIdRanges:
     description: |
         Comma-separated list of <tun_min>:<tun_max> tuples enumerating ranges
diff --git a/controller.yaml b/controller.yaml
index 5156be59bd..79f5ece5f4 100644
--- a/controller.yaml
+++ b/controller.yaml
@@ -343,7 +343,7 @@ parameters:
     default: 'datacentre'
     description: If set, flat networks to configure in neutron plugins.
   NeutronNetworkType:
-    default: 'gre'
+    default: 'vxlan'
     description: The tenant network type for Neutron, either gre or vxlan.
     type: string
   NeutronNetworkVLANRanges:
@@ -385,7 +385,7 @@ parameters:
     description: If set, the public interface is a vlan with this device as the raw device.
     type: string
   NeutronTunnelTypes:
-    default: 'gre'
+    default: 'vxlan'
     description: |
         The tunnel types for the Neutron tenant network. To specify multiple
         values, use a comma separated string, like so: 'gre,vxlan'
diff --git a/deprecated/nova-compute-instance.yaml b/deprecated/nova-compute-instance.yaml
index e68c61f913..811c0fc37f 100644
--- a/deprecated/nova-compute-instance.yaml
+++ b/deprecated/nova-compute-instance.yaml
@@ -100,7 +100,7 @@ parameters:
   NeutronHost:
     type: string
   NeutronNetworkType:
-    default: 'gre'
+    default: 'vxlan'
     description: The tenant network type for Neutron, either gre or vxlan.
     type: string
   NeutronNetworkVLANRanges:
@@ -114,7 +114,7 @@ parameters:
     description: A port to add to the NeutronPhysicalBridge.
     type: string
   NeutronTunnelTypes:
-    default: 'gre'
+    default: 'vxlan'
     description: |
         The tunnel types for the Neutron tenant network. To specify multiple
         values, use a comma separated string, like so: 'gre,vxlan'
diff --git a/deprecated/overcloud-source.yaml b/deprecated/overcloud-source.yaml
index d355c4dfe5..0729b33827 100644
--- a/deprecated/overcloud-source.yaml
+++ b/deprecated/overcloud-source.yaml
@@ -221,7 +221,7 @@ parameters:
       If set, flat networks to configure in neutron plugins. Defaults to
       'datacentre' to permit external network creation.
   NeutronNetworkType:
-    default: 'gre'
+    default: 'vxlan'
     description: The tenant network type for Neutron, either gre or vxlan.
     type: string
   NeutronNetworkVLANRanges:
@@ -279,7 +279,7 @@ parameters:
     description: Shared secret to prevent spoofing
     type: string
   NeutronTunnelTypes:
-    default: 'gre'
+    default: 'vxlan'
     description: |
         The tunnel types for the Neutron tenant network. To specify multiple
         values, use a comma separated string, like so: 'gre,vxlan'
diff --git a/overcloud-without-mergepy.yaml b/overcloud-without-mergepy.yaml
index 02f36ccfd4..63cce2a38c 100644
--- a/overcloud-without-mergepy.yaml
+++ b/overcloud-without-mergepy.yaml
@@ -116,7 +116,7 @@ parameters:
       If set, flat networks to configure in neutron plugins. Defaults to
       'datacentre' to permit external network creation.
   NeutronNetworkType:
-    default: 'gre'
+    default: 'vxlan'
     description: The tenant network type for Neutron, either gre or vxlan.
     type: string
   NeutronPassword:
@@ -155,7 +155,7 @@ parameters:
     description: Shared secret to prevent spoofing
     type: string
   NeutronTunnelTypes:
-    default: 'gre'
+    default: 'vxlan'
     description: |
         The tunnel types for the Neutron tenant network. To specify multiple
         values, use a comma separated string, like so: 'gre,vxlan'
diff --git a/puppet/compute-puppet.yaml b/puppet/compute-puppet.yaml
index 10e7527c1e..74e9b63e36 100644
--- a/puppet/compute-puppet.yaml
+++ b/puppet/compute-puppet.yaml
@@ -100,7 +100,7 @@ parameters:
   NeutronNetworkType:
     type: string
     description: The tenant network type for Neutron, either gre or vxlan.
-    default: 'gre'
+    default: 'vxlan'
   NeutronNetworkVLANRanges:
     default: 'datacentre'
     description: >
@@ -126,7 +126,7 @@ parameters:
     description: |
         The tunnel types for the Neutron tenant network. To specify multiple
         values, use a comma separated string, like so: 'gre,vxlan'
-    default: 'gre'
+    default: 'vxlan'
   NeutronTunnelIdRanges:
     description: |
         Comma-separated list of <tun_min>:<tun_max> tuples enumerating ranges
diff --git a/puppet/controller-puppet.yaml b/puppet/controller-puppet.yaml
index 07ed99de11..f1849e3e67 100644
--- a/puppet/controller-puppet.yaml
+++ b/puppet/controller-puppet.yaml
@@ -319,7 +319,7 @@ parameters:
     description: Whether to enable l3-agent HA
     type: string
   NeutronNetworkType:
-    default: 'gre'
+    default: 'vxlan'
     description: The tenant network type for Neutron, either gre or vxlan.
     type: string
   NeutronNetworkVLANRanges:
@@ -361,7 +361,7 @@ parameters:
     description: If set, the public interface is a vlan with this device as the raw device.
     type: string
   NeutronTunnelTypes:
-    default: 'gre'
+    default: 'vxlan'
     description: |
         The tunnel types for the Neutron tenant network. To specify multiple
         values, use a comma separated string, like so: 'gre,vxlan'