diff --git a/vmware_nsx/plugins/dvs/plugin.py b/vmware_nsx/plugins/dvs/plugin.py
index dc76efa9d9..6d18554abe 100644
--- a/vmware_nsx/plugins/dvs/plugin.py
+++ b/vmware_nsx/plugins/dvs/plugin.py
@@ -146,6 +146,7 @@ class NsxDvsV2(addr_pair_db.AllowedAddressPairsMixin,
         if net_data.get(pnet.NETWORK_TYPE) == c_utils.NetworkTypes.VLAN:
             vlan_tag = net_data.get(pnet.SEGMENTATION_ID, 0)
 
+        net_id = None
         if net_data.get(pnet.NETWORK_TYPE) == c_utils.NetworkTypes.PORTGROUP:
             net_id = net_data.get(pnet.PHYSICAL_NETWORK)
             dvs_id = self._dvs._net_id_to_moref(net_id).value
@@ -164,7 +165,7 @@ class NsxDvsV2(addr_pair_db.AllowedAddressPairsMixin,
                 nsx_db.add_network_binding(
                     context.session, new_net['id'],
                     net_data.get(pnet.NETWORK_TYPE),
-                    'dvs',
+                    net_id or 'dvs',
                     vlan_tag)
         except Exception:
             with excutils.save_and_reraise_exception():
@@ -174,7 +175,7 @@ class NsxDvsV2(addr_pair_db.AllowedAddressPairsMixin,
                     self._dvs.delete_port_group(dvs_id)
 
         new_net[pnet.NETWORK_TYPE] = net_data.get(pnet.NETWORK_TYPE)
-        new_net[pnet.PHYSICAL_NETWORK] = 'dvs'
+        new_net[pnet.PHYSICAL_NETWORK] = net_id or 'dvs'
         new_net[pnet.SEGMENTATION_ID] = vlan_tag
 
         # this extra lookup is necessary to get the
diff --git a/vmware_nsx/tests/unit/dvs/test_plugin.py b/vmware_nsx/tests/unit/dvs/test_plugin.py
index ba6bf18cf2..9853992a98 100644
--- a/vmware_nsx/tests/unit/dvs/test_plugin.py
+++ b/vmware_nsx/tests/unit/dvs/test_plugin.py
@@ -155,7 +155,8 @@ class NeutronSimpleDvsTest(test_plugin.NeutronDbPluginV2TestCase):
         self._plugin = manager.NeutronManager.get_plugin()
 
     def _create_and_delete_dvs_network(self, network_type='flat', vlan_tag=0):
-        params = {'provider:network_type': network_type}
+        params = {'provider:network_type': network_type,
+                  'provider:physical_network': 'fake-moid'}
         if network_type == 'vlan':
             params['provider:segmentation_id'] = vlan_tag
         params['arg_list'] = tuple(params.keys())
@@ -169,16 +170,18 @@ class NeutronSimpleDvsTest(test_plugin.NeutronDbPluginV2TestCase):
                 dvs_id = '%s-%s' % (network['network']['name'], id)
                 binding = nsx_db.get_network_bindings(ctx.session, id)
                 self.assertIsNotNone(binding)
-                self.assertEqual('dvs', binding[0].phy_uuid)
                 if network_type == 'flat':
                     self.assertEqual('flat', binding[0].binding_type)
                     self.assertEqual(0, binding[0].vlan_id)
+                    self.assertEqual('dvs', binding[0].phy_uuid)
                 elif network_type == 'vlan':
                     self.assertEqual('vlan', binding[0].binding_type)
                     self.assertEqual(vlan_tag, binding[0].vlan_id)
+                    self.assertEqual('dvs', binding[0].phy_uuid)
                 elif network_type == 'portgroup':
                     self.assertEqual('portgroup', binding[0].binding_type)
                     self.assertEqual(0, binding[0].vlan_id)
+                    self.assertEqual('fake-moid', binding[0].phy_uuid)
                 else:
                     self.fail()
             if network_type != 'portgroup':