diff --git a/src/main/java/org/onosproject/cordvtn/impl/CordVtnArpProxy.java b/src/main/java/org/onosproject/cordvtn/impl/CordVtnArpProxy.java
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index 0000000..c0b1d61
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+++ b/src/main/java/org/onosproject/cordvtn/impl/CordVtnArpProxy.java
@@ -0,0 +1,243 @@
+/*
+ * Copyright 2016-present Open Networking Laboratory
+ *
+ * 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.
+ */
+package org.onosproject.cordvtn.impl;
+
+import com.google.common.collect.Maps;
+import org.onlab.packet.ARP;
+import org.onlab.packet.EthType;
+import org.onlab.packet.Ethernet;
+import org.onlab.packet.Ip4Address;
+import org.onlab.packet.IpAddress;
+import org.onlab.packet.MacAddress;
+import org.onosproject.core.ApplicationId;
+import org.onosproject.net.Host;
+import org.onosproject.net.flow.DefaultTrafficSelector;
+import org.onosproject.net.flow.DefaultTrafficTreatment;
+import org.onosproject.net.flow.TrafficSelector;
+import org.onosproject.net.flow.TrafficTreatment;
+import org.onosproject.net.host.HostService;
+import org.onosproject.net.packet.DefaultOutboundPacket;
+import org.onosproject.net.packet.PacketContext;
+import org.onosproject.net.packet.PacketPriority;
+import org.onosproject.net.packet.PacketService;
+import org.slf4j.Logger;
+
+import java.nio.ByteBuffer;
+import java.util.Map;
+import java.util.Optional;
+import java.util.Set;
+
+import static com.google.common.base.Preconditions.checkNotNull;
+import static org.slf4j.LoggerFactory.getLogger;
+
+/**
+ * Handles ARP requests for virtual network service IPs.
+ */
+public class CordVtnArpProxy {
+    protected final Logger log = getLogger(getClass());
+
+    private final ApplicationId appId;
+    private final PacketService packetService;
+    private final HostService hostService;
+
+    private final Map<Ip4Address, MacAddress> gateways = Maps.newConcurrentMap();
+
+    /**
+     * Default constructor.
+     *
+     * @param appId application id
+     * @param packetService packet service
+     * @param hostService host service reference
+     */
+    public CordVtnArpProxy(ApplicationId appId, PacketService packetService, HostService hostService) {
+        this.appId = appId;
+        this.packetService = packetService;
+        this.hostService = hostService;
+    }
+
+    /**
+     * Requests ARP packet.
+     */
+    public void requestPacket() {
+        TrafficSelector selector = DefaultTrafficSelector.builder()
+                .matchEthType(EthType.EtherType.ARP.ethType().toShort())
+                .build();
+
+        packetService.requestPackets(selector,
+                                     PacketPriority.CONTROL,
+                                     appId,
+                                     Optional.empty());
+    }
+
+    /**
+     * Cancels ARP packet.
+     */
+    public void cancelPacket() {
+        TrafficSelector selector = DefaultTrafficSelector.builder()
+                .matchEthType(EthType.EtherType.ARP.ethType().toShort())
+                .build();
+
+        packetService.cancelPackets(selector,
+                                    PacketPriority.CONTROL,
+                                    appId,
+                                    Optional.empty());
+    }
+
+    /**
+     * Adds a given gateway IP and MAC address to this ARP proxy.
+     *
+     * @param gatewayIp gateway ip address
+     * @param gatewayMac gateway mac address
+     */
+    public void addGateway(IpAddress gatewayIp, MacAddress gatewayMac) {
+        checkNotNull(gatewayIp);
+        checkNotNull(gatewayMac);
+        gateways.put(gatewayIp.getIp4Address(), gatewayMac);
+    }
+
+    /**
+     * Removes a given service IP address from this ARP proxy.
+     *
+     * @param gatewayIp gateway ip address
+     */
+    public void removeGateway(IpAddress gatewayIp) {
+        checkNotNull(gatewayIp);
+        gateways.remove(gatewayIp.getIp4Address());
+    }
+
+    /**
+     * Emits ARP reply with fake MAC address for a given ARP request.
+     * It only handles requests for the registered service IPs, and the other
+     * requests can be handled by other ARP handlers like openstackSwitching or
+     * proxyArp, for example.
+     *
+     * @param context packet context
+     * @param ethPacket ethernet packet
+     */
+    public void processArpPacket(PacketContext context, Ethernet ethPacket) {
+        ARP arpPacket = (ARP) ethPacket.getPayload();
+        if (arpPacket.getOpCode() != ARP.OP_REQUEST) {
+           return;
+        }
+
+        Ip4Address targetIp = Ip4Address.valueOf(arpPacket.getTargetProtocolAddress());
+
+        MacAddress gatewayMac = gateways.get(targetIp);
+        MacAddress replyMac = gatewayMac != null ? gatewayMac : getMacFromHostService(targetIp);
+
+        if (replyMac.equals(MacAddress.NONE)) {
+            log.debug("Failed to find MAC for {}", targetIp.toString());
+            context.block();
+            return;
+        }
+
+        log.trace("Send ARP reply for {} with {}", targetIp.toString(), replyMac.toString());
+        Ethernet ethReply = ARP.buildArpReply(
+                targetIp,
+                replyMac,
+                ethPacket);
+
+        TrafficTreatment treatment = DefaultTrafficTreatment.builder()
+                .setOutput(context.inPacket().receivedFrom().port())
+                .build();
+
+        packetService.emit(new DefaultOutboundPacket(
+                context.inPacket().receivedFrom().deviceId(),
+                treatment,
+                ByteBuffer.wrap(ethReply.serialize())));
+
+        context.block();
+    }
+
+    /**
+     * Emits gratuitous ARP when a gateway mac address has been changed.
+     *
+     * @param gatewayIp gateway ip address to update MAC
+     * @param hosts set of hosts to send gratuitous ARP packet
+     */
+    public void sendGratuitousArpForGateway(IpAddress gatewayIp, Set<Host> hosts) {
+        MacAddress gatewayMac = gateways.get(gatewayIp.getIp4Address());
+        if (gatewayMac == null) {
+            log.debug("Gateway {} is not registered to ARP proxy", gatewayIp.toString());
+            return;
+        }
+
+        Ethernet ethArp = buildGratuitousArp(gatewayIp.getIp4Address(), gatewayMac);
+        hosts.stream().forEach(host -> {
+            TrafficTreatment treatment = DefaultTrafficTreatment.builder()
+                    .setOutput(host.location().port())
+                    .build();
+
+            packetService.emit(new DefaultOutboundPacket(
+                    host.location().deviceId(),
+                    treatment,
+                    ByteBuffer.wrap(ethArp.serialize())));
+        });
+    }
+
+    /**
+     * Builds gratuitous ARP packet with a given IP and MAC address.
+     *
+     * @param ip ip address for TPA and SPA
+     * @param mac new mac address
+     * @return ethernet packet
+     */
+    private Ethernet buildGratuitousArp(IpAddress ip, MacAddress mac) {
+        Ethernet eth = new Ethernet();
+
+        eth.setEtherType(Ethernet.TYPE_ARP);
+        eth.setSourceMACAddress(mac);
+        eth.setDestinationMACAddress(MacAddress.BROADCAST);
+
+        ARP arp = new ARP();
+        arp.setOpCode(ARP.OP_REQUEST);
+        arp.setHardwareType(ARP.HW_TYPE_ETHERNET);
+        arp.setHardwareAddressLength((byte) Ethernet.DATALAYER_ADDRESS_LENGTH);
+        arp.setProtocolType(ARP.PROTO_TYPE_IP);
+        arp.setProtocolAddressLength((byte) Ip4Address.BYTE_LENGTH);
+
+        arp.setSenderHardwareAddress(mac.toBytes());
+        arp.setTargetHardwareAddress(MacAddress.BROADCAST.toBytes());
+        arp.setSenderProtocolAddress(ip.getIp4Address().toOctets());
+        arp.setTargetProtocolAddress(ip.getIp4Address().toOctets());
+
+        eth.setPayload(arp);
+        return eth;
+    }
+
+    /**
+     * Returns MAC address of a host with a given target IP address by asking to
+     * host service. It does not support overlapping IP.
+     *
+     * @param targetIp target ip
+     * @return mac address, or NONE mac address if it fails to find the mac
+     */
+    private MacAddress getMacFromHostService(IpAddress targetIp) {
+        checkNotNull(targetIp);
+
+        Host host = hostService.getHostsByIp(targetIp)
+                .stream()
+                .findFirst()
+                .orElse(null);
+
+        if (host != null) {
+            log.trace("Found MAC from host service for {}", targetIp.toString());
+            return host.mac();
+        } else {
+            return MacAddress.NONE;
+        }
+    }
+}