diff --git a/deployment/neutron/neutron-plugin-ml2-ovn.yaml b/deployment/neutron/neutron-plugin-ml2-ovn.yaml
index f5b4ee1a9d..53eabaeae0 100644
--- a/deployment/neutron/neutron-plugin-ml2-ovn.yaml
+++ b/deployment/neutron/neutron-plugin-ml2-ovn.yaml
@@ -79,16 +79,6 @@ parameters:
     description: Whether Metadata Service has to be enabled
     type: boolean
     default: true
-  # NOTE(anil): OVN supports only VLAN, geneve and flat networks
-  NeutronNetworkType:
-    default: 'geneve'
-    description: The tenant network type for Neutron.
-    type: comma_delimited_list
-    constraints:
-      - allowed_values:
-          - geneve
-          - vlan
-          - flat
   OVNDnsServers:
     default: []
     description: List of servers to use as as dns forwarders
@@ -156,7 +146,6 @@ outputs:
             neutron::server::igmp_snooping_enable: {get_param: NeutronEnableIgmpSnooping}
             neutron::plugins::ml2::max_header_size: {get_param: NeutronGeneveMaxHeaderSize}
             neutron::plugins::ml2::ovn::dns_servers: {get_param: OVNDnsServers}
-            neutron::plugins::ml2::tenant_network_types: {get_param: NeutronNetworkType}
             neutron::plugins::ml2::ovn::ovn_emit_need_to_frag: {get_param: OVNEmitNeedToFrag}
           - if:
               - internal_tls_enabled
diff --git a/deployment/neutron/neutron-plugin-ml2.yaml b/deployment/neutron/neutron-plugin-ml2.yaml
index 1e726b53e9..3f77e4c5c0 100644
--- a/deployment/neutron/neutron-plugin-ml2.yaml
+++ b/deployment/neutron/neutron-plugin-ml2.yaml
@@ -36,7 +36,7 @@ parameters:
         The mechanism drivers for the Neutron tenant network.
     type: comma_delimited_list
   NeutronTypeDrivers:
-    default: "geneve,vlan,flat"
+    default: "geneve,vxlan,vlan,flat"
     description: |
         Comma-separated list of network type driver entrypoints to be loaded.
     type: comma_delimited_list
diff --git a/environments/services-baremetal/neutron-ovn-dvr-ha.yaml b/environments/services-baremetal/neutron-ovn-dvr-ha.yaml
index 5f23b2878b..bf3abd8c13 100644
--- a/environments/services-baremetal/neutron-ovn-dvr-ha.yaml
+++ b/environments/services-baremetal/neutron-ovn-dvr-ha.yaml
@@ -19,7 +19,7 @@ parameter_defaults:
   OVNVifType: ovs
   OVNNeutronSyncMode: log
   OVNQosDriver: ovn-qos
-  NeutronTypeDrivers: 'geneve,vlan,flat'
+  NeutronTypeDrivers: 'geneve,vxlan,vlan,flat'
   NeutronNetworkType: 'geneve'
   NeutronServicePlugins: 'qos,ovn-router,trunk,segments,port_forwarding'
   NeutronVniRanges: ['1:65536', ]
diff --git a/environments/services-baremetal/neutron-ovn-ha.yaml b/environments/services-baremetal/neutron-ovn-ha.yaml
index 64be15c368..011d0d8fc8 100644
--- a/environments/services-baremetal/neutron-ovn-ha.yaml
+++ b/environments/services-baremetal/neutron-ovn-ha.yaml
@@ -19,7 +19,7 @@ parameter_defaults:
   OVNNeutronSyncMode: log
   OVNQosDriver: ovn-qos
   NeutronEnableDVR: false
-  NeutronTypeDrivers: 'geneve,vlan,flat'
+  NeutronTypeDrivers: 'geneve,vxlan,vlan,flat'
   NeutronNetworkType: 'geneve'
   NeutronServicePlugins: 'qos,ovn-router,trunk,segments,port_forwarding'
   NeutronVniRanges: ['1:65536', ]
diff --git a/environments/services/neutron-ovn-dvr-ha.yaml b/environments/services/neutron-ovn-dvr-ha.yaml
index a49f5ca8e9..f0a5d51ede 100644
--- a/environments/services/neutron-ovn-dvr-ha.yaml
+++ b/environments/services/neutron-ovn-dvr-ha.yaml
@@ -20,8 +20,8 @@ parameter_defaults:
   OVNVifType: ovs
   OVNNeutronSyncMode: log
   OVNQosDriver: ovn-qos
-  NeutronTypeDrivers: 'geneve,vlan,flat'
-  NeutronNetworkType: ['geneve' , 'vlan', 'flat']
+  NeutronTypeDrivers: 'geneve,vxlan,vlan,flat'
+  NeutronNetworkType: ['geneve' , 'vxlan', 'vlan', 'flat']
   NeutronServicePlugins: 'qos,ovn-router,trunk,segments,port_forwarding'
   NeutronVniRanges: ['1:65536', ]
   NeutronRpcWorkers: 1
diff --git a/environments/services/neutron-ovn-ha.yaml b/environments/services/neutron-ovn-ha.yaml
index 189723d942..1f42caf920 100644
--- a/environments/services/neutron-ovn-ha.yaml
+++ b/environments/services/neutron-ovn-ha.yaml
@@ -19,8 +19,8 @@ parameter_defaults:
   OVNNeutronSyncMode: log
   OVNQosDriver: ovn-qos
   NeutronEnableDVR: False
-  NeutronTypeDrivers: 'geneve,vlan,flat'
-  NeutronNetworkType: ['geneve' , 'vlan', 'flat']
+  NeutronTypeDrivers: 'geneve,vxlan,vlan,flat'
+  NeutronNetworkType: ['geneve' , 'vxlan', 'vlan', 'flat']
   NeutronServicePlugins: 'qos,ovn-router,trunk,segments,port_forwarding'
   NeutronVniRanges: ['1:65536', ]
   NeutronPluginExtensions: "qos,port_security,dns"
diff --git a/environments/services/neutron-ovn-standalone.yaml b/environments/services/neutron-ovn-standalone.yaml
index a5afe8ba18..5c2b2b5942 100644
--- a/environments/services/neutron-ovn-standalone.yaml
+++ b/environments/services/neutron-ovn-standalone.yaml
@@ -20,8 +20,8 @@ parameter_defaults:
   OVNVifType: ovs
   OVNNeutronSyncMode: log
   OVNQosDriver: ovn-qos
-  NeutronTypeDrivers: 'geneve,vlan,flat'
-  NeutronNetworkType: ['geneve' , 'vlan', 'flat']
+  NeutronTypeDrivers: 'geneve,vxlan,vlan,flat'
+  NeutronNetworkType: ['geneve', 'vxlan', 'vlan', 'flat']
   NeutronServicePlugins: 'qos,ovn-router,trunk,segments,port_forwarding'
   NeutronVniRanges: ['1:65536', ]
   NeutronRpcWorkers: 1
diff --git a/releasenotes/notes/vxlan-support-for-ovn-1320be8046aca9c6.yaml b/releasenotes/notes/vxlan-support-for-ovn-1320be8046aca9c6.yaml
new file mode 100644
index 0000000000..53845abbeb
--- /dev/null
+++ b/releasenotes/notes/vxlan-support-for-ovn-1320be8046aca9c6.yaml
@@ -0,0 +1,4 @@
+---
+features:
+  - |
+    OVN now supports VXLAN network type for tenant networks.
diff --git a/tools/yaml-validate.py b/tools/yaml-validate.py
index 2c6aa52d5d..4c4f6f30d2 100755
--- a/tools/yaml-validate.py
+++ b/tools/yaml-validate.py
@@ -193,14 +193,6 @@ PARAMETER_DEFINITION_EXCLUSIONS = {
     'BondInterfaceOvsOptions': ['description',
                                 'default',
                                 'constraints'],
-    # NOTE(anil): This is a temporary change and
-    # will be removed once bug #1767070 properly
-    # fixed. OVN supports only VLAN, geneve
-    # and flat for NeutronNetworkType. But VLAN
-    # tenant networks have a limited support
-    # in OVN. Till that is fixed, we restrict
-    # NeutronNetworkType to 'geneve'.
-    'NeutronNetworkType': ['description', 'default', 'constraints'],
     'KeyName': ['constraints'],
     'OVNSouthboundServerPort': ['description'],
     'ExternalInterfaceDefaultRoute': ['description', 'default'],