diff --git a/src/conf_mode/interfaces-vxlan.py b/src/conf_mode/interfaces-vxlan.py
index 8e6247a30..804f2d14f 100755
--- a/src/conf_mode/interfaces-vxlan.py
+++ b/src/conf_mode/interfaces-vxlan.py
@@ -1,108 +1,117 @@
 #!/usr/bin/env python3
 #
 # Copyright (C) 2019-2020 VyOS maintainers and contributors
 #
 # This program is free software; you can redistribute it and/or modify
 # it under the terms of the GNU General Public License version 2 or later as
 # published by the Free Software Foundation.
 #
 # This program is distributed in the hope that it will be useful,
 # but WITHOUT ANY WARRANTY; without even the implied warranty of
 # MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the
 # GNU General Public License for more details.
 #
 # You should have received a copy of the GNU General Public License
 # along with this program.  If not, see <http://www.gnu.org/licenses/>.
 
 import os
 
 from sys import exit
 from netifaces import interfaces
 
 from vyos.config import Config
 from vyos.configdict import get_interface_dict
 from vyos.configverify import verify_address
 from vyos.configverify import verify_bridge_delete
 from vyos.configverify import verify_mtu_ipv6
 from vyos.configverify import verify_source_interface
-from vyos.ifconfig import VXLANIf, Interface
+from vyos.ifconfig import Interface
+from vyos.ifconfig import VXLANIf
+from vyos.template import is_ipv6
 from vyos import ConfigError
 from vyos import airbag
 airbag.enable()
 
 def get_config(config=None):
     """
     Retrive CLI config as dictionary. Dictionary can never be empty, as at least the
     interface name will be added or a deleted flag
     """
     if config:
         conf = config
     else:
         conf = Config()
     base = ['interfaces', 'vxlan']
     vxlan = get_interface_dict(conf, base)
 
     return vxlan
 
 def verify(vxlan):
     if 'deleted' in vxlan:
         verify_bridge_delete(vxlan)
         return None
 
     if int(vxlan['mtu']) < 1500:
         print('WARNING: RFC7348 recommends VXLAN tunnels preserve a 1500 byte MTU')
 
     if 'group' in vxlan:
         if 'source_interface' not in vxlan:
             raise ConfigError('Multicast VXLAN requires an underlaying interface ')
 
         verify_source_interface(vxlan)
 
     if not any(tmp in ['group', 'remote', 'source_address'] for tmp in vxlan):
         raise ConfigError('Group, remote or source-address must be configured')
 
     if 'vni' not in vxlan:
         raise ConfigError('Must configure VNI for VXLAN')
 
     if 'source_interface' in vxlan:
-        # VXLAN adds a 50 byte overhead - we need to check the underlaying MTU
-        # if our configured MTU is at least 50 bytes less
+        # VXLAN adds at least an overhead of 50 byte - we need to check the
+        # underlaying device if our VXLAN package is not going to be fragmented!
+        vxlan_overhead = 50
+        if 'source_address' in vxlan and is_ipv6(vxlan['source_address']):
+            # IPv6 adds an extra 20 bytes overhead because the IPv6 header is 20
+            # bytes larger than the IPv4 header - assuming no extra options are
+            # in use.
+            vxlan_overhead += 20
+
         lower_mtu = Interface(vxlan['source_interface']).get_mtu()
-        if lower_mtu < (int(vxlan['mtu']) + 50):
-            raise ConfigError('VXLAN has a 50 byte overhead, underlaying device ' \
-                              f'MTU is to small ({lower_mtu} bytes)')
+        if lower_mtu < (int(vxlan['mtu']) + vxlan_overhead):
+            raise ConfigError(f'Underlaying device MTU is to small ({lower_mtu} '\
+                              f'bytes) for VXLAN overhead ({vxlan_overhead} bytes!)')
 
     verify_mtu_ipv6(vxlan)
     verify_address(vxlan)
     return None
 
 
 def generate(vxlan):
     return None
 
 
 def apply(vxlan):
     # Check if the VXLAN interface already exists
     if vxlan['ifname'] in interfaces():
         v = VXLANIf(vxlan['ifname'])
         # VXLAN is super picky and the tunnel always needs to be recreated,
         # thus we can simply always delete it first.
         v.remove()
 
     if 'deleted' not in vxlan:
         # Finally create the new interface
         v = VXLANIf(**vxlan)
         v.update(vxlan)
 
     return None
 
 
 if __name__ == '__main__':
     try:
         c = get_config()
         verify(c)
         generate(c)
         apply(c)
     except ConfigError as e:
         print(e)
         exit(1)