350-601 Network Practice Question
In a VXLAN overlay network, which component is responsible for encapsulating and decapsulating packets and resides at the edge of the underlay network?
⚠ Common exam trap
Cisco often tests the distinction between the data-plane component (VTEP) and the control-plane component (NSX Controller or EVPN), leading candidates to mistakenly select the controller as the encapsulating device.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
VTEP
C is correct because the VXLAN Tunnel Endpoint (VTEP) is the device at the edge of the underlay network that performs encapsulation and decapsulation of VXLAN packets. It adds a VXLAN header (including a 24-bit VNI) and outer UDP/IP headers to original Layer 2 frames, and removes them on the receiving side. This function is defined in RFC 7348 and is essential for extending Layer 2 segments over a Layer 3 underlay.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
VNI
Why it's wrong here
VNI identifies the overlay segment, not the endpoint.
- ✗
NSX Controller
Why it's wrong here
NSX Controller is for VMware NSX, not standard VXLAN.
- ✓
VTEP
Why this is correct
Correct: VTEP is the tunnel endpoint.
- ✗
Leaf switch
Why it's wrong here
Leaf switch may host VTEP but the term itself is not the component.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This 350-601 practice question is part of Courseiva's free Cisco certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the 350-601 exam.