diff --git a/packstack/plugins/neutron_350.py b/packstack/plugins/neutron_350.py
index 15a6d5871..55ca653db 100644
--- a/packstack/plugins/neutron_350.py
+++ b/packstack/plugins/neutron_350.py
@@ -845,7 +845,10 @@ def create_dhcp_manifests(config, messages):
     for host in network_hosts:
         config["CONFIG_NEUTRON_DHCP_HOST"] = host
         config['CONFIG_NEUTRON_DHCP_INTERFACE_DRIVER'] = get_if_driver(config)
-        manifest_data = getManifestTemplate("neutron_dhcp.pp")
+        if use_openvswitch_vxlan(config) or use_openvswitch_gre(config):
+            manifest_data = getManifestTemplate("neutron_dhcp_mtu.pp")
+        else:
+            manifest_data = getManifestTemplate("neutron_dhcp.pp")
         manifest_file = "%s_neutron.pp" % (host,)
         # Firewall Rules for dhcp in
         fw_details = dict()
diff --git a/packstack/puppet/templates/neutron_dhcp_mtu.pp b/packstack/puppet/templates/neutron_dhcp_mtu.pp
new file mode 100644
index 000000000..c89313fe8
--- /dev/null
+++ b/packstack/puppet/templates/neutron_dhcp_mtu.pp
@@ -0,0 +1,14 @@
+class { 'neutron::agents::dhcp':
+  interface_driver    => hiera('CONFIG_NEUTRON_DHCP_INTERFACE_DRIVER'),
+  debug               => hiera('CONFIG_DEBUG_MODE'),
+  dnsmasq_config_file => '/etc/neutron/dnsmasq-neutron.conf',
+  require             => File['/etc/neutron/dnsmasq-neutron.conf'],
+}
+
+file { '/etc/neutron/dnsmasq-neutron.conf':
+  content => 'dhcp-option-force=26,1400',
+  owner   => 'root',
+  group   => 'neutron',
+  mode    => '0640',
+}
+