diff --git a/neutron_tempest_plugin/scenario/base.py b/neutron_tempest_plugin/scenario/base.py
index 8591c89..a1a054a 100644
--- a/neutron_tempest_plugin/scenario/base.py
+++ b/neutron_tempest_plugin/scenario/base.py
@@ -367,7 +367,8 @@
                                    should_succeed=True,
                                    nic=None, mtu=None, fragmentation=True,
                                    timeout=None, pattern=None,
-                                   forbid_packet_loss=False):
+                                   forbid_packet_loss=False,
+                                   check_response_ip=True):
         """check ping server via source ssh connection
 
         :param source: RemoteClient: an ssh connection from which to ping
@@ -380,6 +381,7 @@
         :param timeout: Timeout for all ping packet(s) to succeed
         :param pattern: hex digits included in ICMP messages
         :param forbid_packet_loss: forbid or allow some lost packets
+        :param check_response_ip: check response ip
         :returns: boolean -- should_succeed == ping
         :returns: ping is false if ping failed
         """
@@ -422,7 +424,8 @@
                 LOG.debug('Packet loss detected')
                 return not should_succeed
 
-            if validators.validate_ip_address(dest) is None:
+            if (check_response_ip and
+                    validators.validate_ip_address(dest) is None):
                 # Assert that the return traffic was from the correct
                 # source address.
                 from_source = 'from %s' % dest
@@ -436,13 +439,15 @@
                                   nic=None, mtu=None, fragmentation=True,
                                   servers=None, timeout=None,
                                   ping_count=CONF.validation.ping_count,
-                                  pattern=None, forbid_packet_loss=False):
+                                  pattern=None, forbid_packet_loss=False,
+                                  check_response_ip=True):
         try:
             self.assertTrue(self._check_remote_connectivity(
                 source, dest, ping_count, should_succeed, nic, mtu,
                 fragmentation,
                 timeout=timeout, pattern=pattern,
-                forbid_packet_loss=forbid_packet_loss))
+                forbid_packet_loss=forbid_packet_loss,
+                check_response_ip=check_response_ip))
         except (lib_exc.SSHTimeout, ssh_exc.AuthenticationException) as ssh_e:
             LOG.debug(ssh_e)
             self._log_console_output(servers)
diff --git a/neutron_tempest_plugin/scenario/test_local_ip.py b/neutron_tempest_plugin/scenario/test_local_ip.py
new file mode 100644
index 0000000..0cc9de1
--- /dev/null
+++ b/neutron_tempest_plugin/scenario/test_local_ip.py
@@ -0,0 +1,103 @@
+#   Copyright 2021 Huawei, Inc. All rights reserved.
+#
+#   Licensed under the Apache License, Version 2.0 (the "License"); you may
+#   not use this file except in compliance with the License. You may obtain
+#   a copy of the License at
+#
+#        http://www.apache.org/licenses/LICENSE-2.0
+#
+#   Unless required by applicable law or agreed to in writing, software
+#   distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
+#   WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the
+#   License for the specific language governing permissions and limitations
+#   under the License.
+#
+
+from oslo_log import log as logging
+from tempest.common import utils
+from tempest.common import waiters
+from tempest.lib.common.utils import data_utils
+from tempest.lib import decorators
+
+from neutron_tempest_plugin.common import ssh
+from neutron_tempest_plugin import config
+from neutron_tempest_plugin.scenario import base
+from neutron_tempest_plugin.scenario import constants as const
+
+LOG = logging.getLogger(__name__)
+CONF = config.CONF
+
+
+class LocalIPTest(base.BaseTempestTestCase):
+    credentials = ['primary', 'admin']
+
+    @classmethod
+    @utils.requires_ext(extension="local_ip", service="network")
+    def resource_setup(cls):
+        super(LocalIPTest, cls).resource_setup()
+        cls.network = cls.create_network()
+        cls.subnet = cls.create_subnet(cls.network)
+        cls.keypair = cls.create_keypair()
+
+        # Create security group with admin privileges
+        cls.secgroup = cls.create_security_group(
+            name=data_utils.rand_name('secgroup'))
+
+        # Execute funcs to achieve ssh and ICMP capabilities
+        cls.create_loginable_secgroup_rule(secgroup_id=cls.secgroup['id'])
+        cls.create_pingable_secgroup_rule(secgroup_id=cls.secgroup['id'])
+
+        # Create router
+        cls.router = cls.create_router(
+            router_name=data_utils.rand_name("router-test"),
+            admin_state_up=True,
+            external_network_id=CONF.network.public_network_id)
+        cls.create_router_interface(cls.router['id'], cls.subnet['id'])
+
+    def _create_server(self, name=None):
+        port = self.create_port(
+            self.network, security_groups=[self.secgroup['id']])
+        server = self.create_server(
+            flavor_ref=CONF.compute.flavor_ref,
+            image_ref=CONF.compute.image_ref,
+            key_name=self.keypair['name'], name=name,
+            networks=[{'port': port['id']}])['server']
+        waiters.wait_for_server_status(self.os_primary.servers_client,
+                                       server['id'],
+                                       const.SERVER_STATUS_ACTIVE)
+
+        return {'port': port, 'server': server}
+
+    @decorators.idempotent_id('3aa4b288-011a-4aa2-9024-19ad2ce40bfd')
+    def test_local_ip_connectivity(self):
+        server1 = self._create_server(name='local_ip_vm1')
+        server2 = self._create_server(name='local_ip_vm2')
+
+        fip = self.create_and_associate_floatingip(server1['port']['id'])
+        ssh_client = ssh.Client(
+            fip['floating_ip_address'],
+            CONF.validation.image_ssh_user,
+            pkey=self.keypair['private_key'])
+
+        servers = [server1['server'], server2['server']]
+
+        # first check basic connectivity
+        self.check_remote_connectivity(
+            ssh_client,
+            server2['port']['fixed_ips'][0]['ip_address'],
+            servers=servers)
+
+        local_ip = self.create_local_ip(network_id=self.network['id'])
+        self.create_local_ip_association(local_ip['id'],
+                                         fixed_port_id=server2['port']['id'])
+        # check connectivity with local ip address
+        self.check_remote_connectivity(
+            ssh_client, local_ip['local_ip_address'],
+            servers=servers, check_response_ip=False)
+
+        # check basic connectivity after local ip association
+        self.check_remote_connectivity(
+            ssh_client,
+            server2['port']['fixed_ips'][0]['ip_address'],
+            servers=servers,
+            check_response_ip=False)
diff --git a/zuul.d/master_jobs.yaml b/zuul.d/master_jobs.yaml
index b167689..6cddf0e 100644
--- a/zuul.d/master_jobs.yaml
+++ b/zuul.d/master_jobs.yaml
@@ -139,18 +139,21 @@
         ovsdb-server: false
         q-ovn-metadata-agent: false
         # Neutron services
+        neutron-local-ip-static: true
         q-agt: true
         q-dhcp: true
         q-l3: true
         q-meta: true
         q-metering: true
       network_api_extensions: *api_extensions
+      network_api_extensions_openvswitch:
+        - local_ip
       network_available_features: *available_features
       devstack_localrc:
         Q_AGENT: openvswitch
         Q_ML2_TENANT_NETWORK_TYPE: vxlan
         Q_ML2_PLUGIN_MECHANISM_DRIVERS: openvswitch
-        NETWORK_API_EXTENSIONS: "{{ network_api_extensions | join(',') }}"
+        NETWORK_API_EXTENSIONS: "{{ (network_api_extensions + network_api_extensions_openvswitch) | join(',') }}"
       devstack_local_conf:
         post-config:
           $NEUTRON_CONF:
@@ -205,12 +208,15 @@
         ovsdb-server: false
         q-ovn-metadata-agent: false
         # Neutron services
+        neutron-local-ip: true
         q-agt: true
         q-dhcp: true
         q-l3: true
         q-meta: true
         q-metering: true
       network_api_extensions: *api_extensions
+      network_api_extensions_openvswitch:
+        - local_ip
       network_available_features: *available_features
       # TODO(slaweq): remove trunks subport_connectivity test from blacklist
       # when bug https://bugs.launchpad.net/neutron/+bug/1838760 will be fixed
@@ -223,7 +229,7 @@
         Q_AGENT: openvswitch
         Q_ML2_TENANT_NETWORK_TYPE: vxlan
         Q_ML2_PLUGIN_MECHANISM_DRIVERS: openvswitch
-        NETWORK_API_EXTENSIONS: "{{ network_api_extensions | join(',') }}"
+        NETWORK_API_EXTENSIONS: "{{ (network_api_extensions + network_api_extensions_openvswitch) | join(',') }}"
       devstack_local_conf:
         post-config:
           $NEUTRON_CONF: