diff --git a/vmware_nsx/plugins/common_v3/plugin.py b/vmware_nsx/plugins/common_v3/plugin.py
index 1218c5d8ea..db049e0a4a 100644
--- a/vmware_nsx/plugins/common_v3/plugin.py
+++ b/vmware_nsx/plugins/common_v3/plugin.py
@@ -1151,6 +1151,15 @@ class NsxPluginV3Base(agentschedulers_db.AZDhcpAgentSchedulerDbMixin,
         if bindings:
             return bindings[0].vlan_id
 
+    def _get_network_vlan_transparent(self, context, network_id):
+        if not cfg.CONF.vlan_transparent:
+            return False
+        # Get this flag directly from DB to improve performance
+        db_entry = context.session.query(models_v2.Network).filter_by(
+            id=network_id).first()
+        if db_entry:
+            return True if db_entry.vlan_transparent else False
+
     def _extend_nsx_port_dict_binding(self, context, port_data):
         # Not using the register api for this because we need the context
         # Some attributes were already initialized by _extend_port_portbinding
@@ -1173,6 +1182,8 @@ class NsxPluginV3Base(agentschedulers_db.AZDhcpAgentSchedulerDbMixin,
             if port_data[pbin.VNIC_TYPE] != pbin.VNIC_NORMAL:
                 port_data[pbin.VIF_DETAILS]['segmentation-id'] = (
                     self._get_network_segmentation_id(context, net_id))
+                port_data[pbin.VIF_DETAILS]['vlan-transparent'] = (
+                    self._get_network_vlan_transparent(context, net_id))
 
     def _extend_qos_port_dict_binding(self, context, port):
         # add the qos policy id from the DB
diff --git a/vmware_nsx/tests/unit/nsx_v3/test_plugin.py b/vmware_nsx/tests/unit/nsx_v3/test_plugin.py
index f1367c47c0..750ac24836 100644
--- a/vmware_nsx/tests/unit/nsx_v3/test_plugin.py
+++ b/vmware_nsx/tests/unit/nsx_v3/test_plugin.py
@@ -998,6 +998,8 @@ class TestPortsV2(common_v3.NsxV3SubnetMixin,
     def setUp(self):
         cfg.CONF.set_override('switching_profiles', [NSX_SWITCH_PROFILE],
                               'nsx_v3')
+        # add vlan transparent to the configuration
+        cfg.CONF.set_override('vlan_transparent', True)
         super(TestPortsV2, self).setUp()
         self.plugin = directory.get_plugin()
         self.ctx = context.get_admin_context()
@@ -1844,6 +1846,8 @@ class TestPortsV2(common_v3.NsxV3SubnetMixin,
             self.assertEqual(
                 vlan_id,
                 sport['port'][portbindings.VIF_DETAILS]['segmentation-id'])
+            self.assertFalse(
+                sport['port'][portbindings.VIF_DETAILS]['vlan-transparent'])
 
     def test_create_port_vnic_direct_flat(self):
         self._test_create_port_vnic_direct(0)
@@ -1896,6 +1900,31 @@ class TestPortsV2(common_v3.NsxV3SubnetMixin,
                                     **kwargs)
             self.assertEqual(res.status_int, exc.HTTPBadRequest.code)
 
+    def test_create_transparent_vlan_port(self):
+        providernet_args = {pnet.NETWORK_TYPE: 'vlan',
+                            vlan_apidef.VLANTRANSPARENT: True}
+        with mock.patch('vmware_nsxlib.v3.core_resources.NsxLibTransportZone.'
+                       'get_transport_type', return_value='VLAN'):
+            result = self._create_network(fmt='json', name='vlan_net',
+                                          admin_state_up=True,
+                                          providernet_args=providernet_args,
+                                          arg_list=(
+                                              pnet.NETWORK_TYPE,
+                                              pnet.SEGMENTATION_ID,
+                                              vlan_apidef.VLANTRANSPARENT))
+            network = self.deserialize('json', result)
+            net_id = network['network']['id']
+
+            with self.subnet(network=network):
+                kwargs = {portbindings.VNIC_TYPE: portbindings.VNIC_DIRECT}
+                net_id = network['network']['id']
+                res = self._create_port(self.fmt, net_id=net_id,
+                                        arg_list=(portbindings.VNIC_TYPE,),
+                                        **kwargs)
+                port = self.deserialize('json', res)
+                self.assertTrue(
+                    port['port'][portbindings.VIF_DETAILS]['vlan-transparent'])
+
     @common_v3.with_disable_dhcp
     def test_requested_subnet_id_v4_and_v6(self):
         return super(TestPortsV2, self).test_requested_subnet_id_v4_and_v6()