350-401 Infrastructure Practice Question
A network engineer is implementing VXLAN with an EVPN control plane. The underlay is a routed Layer 3 network. Which statement describes the role of the VXLAN Tunnel Endpoint (VTEP)?
⚠ Common exam trap
Watch out — candidates often confuse the VTEP's data plane encapsulation role with control plane functions like MAC address advertisement or additional features like inter-subnet routing.
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
✓
The VTEP encapsulates Layer 2 frames into VXLAN packets and forwards them over the IP underlay.
The VTEP encapsulates Layer 2 frames into VXLAN packets and forwards them over the IP underlay. It is the device that provides the overlay encapsulation and decapsulation, enabling Layer 2 connectivity across a Layer 3 network.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
The VTEP acts as a Layer 3 gateway for inter-subnet routing.
Why it's wrong here
A VTEP can be configured as a distributed anycast gateway for inter-subnet routing in some designs, but that is an additional function, not the defining role. The fundamental role of a VTEP is to encapsulate and decapsulate VXLAN frames.
- ✗
The VTEP is responsible for advertising MAC addresses to the EVPN control plane.
Why it's wrong here
While VTEPs participate in EVPN and may advertise MAC addresses via BGP EVPN, the primary role of the VTEP is encapsulation and decapsulation of VXLAN traffic. Advertising MAC addresses is a function of the EVPN control plane, not the VTEP's core data plane role.
- ✗
The VTEP maps VLAN IDs to VXLAN Network Identifiers (VNIs).
Why it's wrong here
Mapping VLANs to VNIs is a configuration task on the VTEP, but it is not the definition of its role. The VTEP's primary function is encapsulation and decapsulation. The mapping is a necessary configuration to associate traffic with the correct overlay network.
- ✓
The VTEP encapsulates Layer 2 frames into VXLAN packets and forwards them over the IP underlay.
Why this is correct
The VTEP is responsible for encapsulating original Layer 2 frames into VXLAN UDP packets, adding a VXLAN header, and forwarding them across the IP underlay network. It also decapsulates received VXLAN packets, making it the core component for overlay connectivity.
Go deeper
Related to this question
Learn chapter
Network Access Control and AAA
Key term
Cisco Virtual Topology System
Cisco Virtual Topology System is a software-defined networking solution that creates and manages virtual network overlays across physical and virtual infrastructure for enterprise networks.
Key term
VXLAN
VXLAN is a network overlay technology that encapsulates Layer 2 Ethernet frames in UDP packets to extend VLANs across Layer 3 networks.
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Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official Cisco exam blueprint
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