diff --git a/nova/tests/unit/virt/libvirt/test_vif.py b/nova/tests/unit/virt/libvirt/test_vif.py
index 841a3de3f5c8..90a91f49a74e 100644
--- a/nova/tests/unit/virt/libvirt/test_vif.py
+++ b/nova/tests/unit/virt/libvirt/test_vif.py
@@ -972,11 +972,14 @@ class LibvirtVifTestCase(test.NoDBTestCase):
     @mock.patch.object(pci_utils, 'get_vf_num_by_pci_address', return_value=1)
     @mock.patch('nova.privsep.linux_net.set_device_macaddr')
     @mock.patch('nova.privsep.linux_net.set_device_macaddr_and_vlan')
-    def test_unplug_hw_veb(self, mock_set_macaddr_and_vlan,
-                           mock_set_macaddr, mock_get_vf_num,
-                           mock_get_ifname):
-        d = vif.LibvirtGenericVIFDriver()
+    def _test_hw_veb_op(self, op, vlan, mock_set_macaddr_and_vlan,
+                        mock_set_macaddr, mock_get_vf_num,
+                        mock_get_ifname):
         mock_get_ifname.side_effect = ['eth1', 'eth13']
+        vlan_id = int(vlan)
+        port_state = 'up' if vlan_id > 0 else 'down'
+        mac = ('00:00:00:00:00:00' if op.__name__ == 'unplug'
+               else self.vif_hw_veb_macvtap['address'])
         calls = {
             'get_ifname':
                 [mock.call(self.vif_hw_veb_macvtap['profile']['pci_slot'],
@@ -984,17 +987,24 @@ class LibvirtVifTestCase(test.NoDBTestCase):
                  mock.call(self.vif_hw_veb_macvtap['profile']['pci_slot'])],
             'get_vf_num':
                 [mock.call(self.vif_hw_veb_macvtap['profile']['pci_slot'])],
-            'set_macaddr': [mock.call(
-                'eth13', '00:00:00:00:00:00', port_state='down')]
+            'set_macaddr': [mock.call('eth13', mac, port_state=port_state)]
         }
-
-        d.unplug(self.instance, self.vif_hw_veb_macvtap)
-
+        op(self.instance, self.vif_hw_veb_macvtap)
         mock_get_ifname.assert_has_calls(calls['get_ifname'])
         mock_get_vf_num.assert_has_calls(calls['get_vf_num'])
         mock_set_macaddr.assert_has_calls(calls['set_macaddr'])
         mock_set_macaddr_and_vlan.assert_called_once_with(
-            'eth1', 1, mock.ANY, 0)
+            'eth1', 1, mock.ANY, vlan_id)
+
+    def test_plug_hw_veb(self):
+        d = vif.LibvirtGenericVIFDriver()
+        details = self.vif_hw_veb_macvtap['details']
+        vlan = details[network_model.VIF_DETAILS_VLAN]
+        self._test_hw_veb_op(d.plug, vlan)
+
+    def test_unplug_hw_veb(self):
+        d = vif.LibvirtGenericVIFDriver()
+        self._test_hw_veb_op(d.unplug, 0)
 
     @mock.patch('nova.network.linux_net.set_vf_trusted')
     def test_plug_hw_veb_trusted(self, mset_vf_trusted):
diff --git a/nova/virt/libvirt/vif.py b/nova/virt/libvirt/vif.py
index 0c57fc2a5e49..d3a2a26dbab4 100644
--- a/nova/virt/libvirt/vif.py
+++ b/nova/virt/libvirt/vif.py
@@ -97,20 +97,20 @@ def is_vif_model_valid_for_virt(virt_type, vif_model):
 
 
 def set_vf_interface_vlan(pci_addr, mac_addr, vlan=0):
+    vlan_id = int(vlan)
     pf_ifname = pci_utils.get_ifname_by_pci_address(pci_addr,
                                                     pf_interface=True)
     vf_ifname = pci_utils.get_ifname_by_pci_address(pci_addr)
     vf_num = pci_utils.get_vf_num_by_pci_address(pci_addr)
 
     nova.privsep.linux_net.set_device_macaddr_and_vlan(
-        pf_ifname, vf_num, mac_addr, vlan)
+        pf_ifname, vf_num, mac_addr, vlan_id)
 
     # Bring up/down the VF's interface
     # TODO(edand): The mac is assigned as a workaround for the following issue
-    # https://bugzilla.redhat.com/show_bug.cgi?id=1415609 and should be removed
-    # once we bump the libvirt minimum to 3.2.0, as noted in
-    # https://bugzilla.redhat.com/show_bug.cgi?id=1372944
-    port_state = 'up' if vlan > 0 else 'down'
+    #              https://bugzilla.redhat.com/show_bug.cgi?id=1372944
+    #              once resolved it will be removed
+    port_state = 'up' if vlan_id > 0 else 'down'
     nova.privsep.linux_net.set_device_macaddr(vf_ifname, mac_addr,
                                               port_state=port_state)
 
@@ -625,7 +625,20 @@ class LibvirtGenericVIFDriver(object):
                           instance=instance)
 
     def plug_hw_veb(self, instance, vif):
-        if vif['vnic_type'] == network_model.VNIC_TYPE_DIRECT:
+        # TODO(adrianc): The piece of code for MACVTAP can be removed once:
+        #  1. neutron SR-IOV agent does not rely on the administrative mac
+        #     as depicted in https://bugs.launchpad.net/neutron/+bug/1841067
+        #  2. libvirt driver does not change mac address for macvtap VNICs
+        #     or Alternatively does not rely on recreating libvirt's nodev
+        #     name from the current mac address set on the netdevice.
+        #     See: virt.libvrit.driver.LibvirtDriver._get_pcinet_info
+        if vif['vnic_type'] == network_model.VNIC_TYPE_MACVTAP:
+            set_vf_interface_vlan(
+                vif['profile']['pci_slot'],
+                mac_addr=vif['address'],
+                vlan=vif['details'][network_model.VIF_DETAILS_VLAN])
+
+        elif vif['vnic_type'] == network_model.VNIC_TYPE_DIRECT:
             trusted = strutils.bool_from_string(
                 vif['profile'].get('trusted', "False"))
             if trusted: