#NSX #Concept ## Traffic flow through Overlay networking Every packet that is sent over an Overlay network is encapsulated through [[NSX - Geneve]], which includes a Source TEP and Destination TEP. Through this the packet is sent to the correct Route even over a distributed Overlay segment stretching many sites/routers. From the VM side it looks like the VMs are inside the same L2 Network, as the GENEVE Encapsulation is stripped before by the NSX Host/Node. Because of the Encapsulation a bigger MTU than the standard 1500 is required, NSX recommends at least 1700. ## 🔗Resources