diff --git a/drivers/net/ethernet/mellanox/mlxsw/spectrum_router.c b/drivers/net/ethernet/mellanox/mlxsw/spectrum_router.c
index 5f05723011b4..31656a2a6252 100644
--- a/drivers/net/ethernet/mellanox/mlxsw/spectrum_router.c
+++ b/drivers/net/ethernet/mellanox/mlxsw/spectrum_router.c
@@ -2371,7 +2371,7 @@ static enum mlxsw_reg_rauht_op mlxsw_sp_rauht_op(bool adding)
 			MLXSW_REG_RAUHT_OP_WRITE_DELETE;
 }
 
-static void
+static int
 mlxsw_sp_router_neigh_entry_op4(struct mlxsw_sp *mlxsw_sp,
 				struct mlxsw_sp_neigh_entry *neigh_entry,
 				enum mlxsw_reg_rauht_op op)
@@ -2385,10 +2385,10 @@ mlxsw_sp_router_neigh_entry_op4(struct mlxsw_sp *mlxsw_sp,
 	if (neigh_entry->counter_valid)
 		mlxsw_reg_rauht_pack_counter(rauht_pl,
 					     neigh_entry->counter_index);
-	mlxsw_reg_write(mlxsw_sp->core, MLXSW_REG(rauht), rauht_pl);
+	return mlxsw_reg_write(mlxsw_sp->core, MLXSW_REG(rauht), rauht_pl);
 }
 
-static void
+static int
 mlxsw_sp_router_neigh_entry_op6(struct mlxsw_sp *mlxsw_sp,
 				struct mlxsw_sp_neigh_entry *neigh_entry,
 				enum mlxsw_reg_rauht_op op)
@@ -2402,7 +2402,7 @@ mlxsw_sp_router_neigh_entry_op6(struct mlxsw_sp *mlxsw_sp,
 	if (neigh_entry->counter_valid)
 		mlxsw_reg_rauht_pack_counter(rauht_pl,
 					     neigh_entry->counter_index);
-	mlxsw_reg_write(mlxsw_sp->core, MLXSW_REG(rauht), rauht_pl);
+	return mlxsw_reg_write(mlxsw_sp->core, MLXSW_REG(rauht), rauht_pl);
 }
 
 bool mlxsw_sp_neigh_ipv6_ignore(struct mlxsw_sp_neigh_entry *neigh_entry)
@@ -2424,20 +2424,33 @@ mlxsw_sp_neigh_entry_update(struct mlxsw_sp *mlxsw_sp,
 			    struct mlxsw_sp_neigh_entry *neigh_entry,
 			    bool adding)
 {
+	enum mlxsw_reg_rauht_op op = mlxsw_sp_rauht_op(adding);
+	int err;
+
 	if (!adding && !neigh_entry->connected)
 		return;
 	neigh_entry->connected = adding;
 	if (neigh_entry->key.n->tbl->family == AF_INET) {
-		mlxsw_sp_router_neigh_entry_op4(mlxsw_sp, neigh_entry,
-						mlxsw_sp_rauht_op(adding));
+		err = mlxsw_sp_router_neigh_entry_op4(mlxsw_sp, neigh_entry,
+						      op);
+		if (err)
+			return;
 	} else if (neigh_entry->key.n->tbl->family == AF_INET6) {
 		if (mlxsw_sp_neigh_ipv6_ignore(neigh_entry))
 			return;
-		mlxsw_sp_router_neigh_entry_op6(mlxsw_sp, neigh_entry,
-						mlxsw_sp_rauht_op(adding));
+		err = mlxsw_sp_router_neigh_entry_op6(mlxsw_sp, neigh_entry,
+						      op);
+		if (err)
+			return;
 	} else {
 		WARN_ON_ONCE(1);
+		return;
 	}
+
+	if (adding)
+		neigh_entry->key.n->flags |= NTF_OFFLOADED;
+	else
+		neigh_entry->key.n->flags &= ~NTF_OFFLOADED;
 }
 
 void
diff --git a/tools/testing/selftests/drivers/net/mlxsw/rtnetlink.sh b/tools/testing/selftests/drivers/net/mlxsw/rtnetlink.sh
index c4cf6e6d800e..017d839fcefa 100755
--- a/tools/testing/selftests/drivers/net/mlxsw/rtnetlink.sh
+++ b/tools/testing/selftests/drivers/net/mlxsw/rtnetlink.sh
@@ -26,6 +26,7 @@ ALL_TESTS="
 	lag_dev_deletion_test
 	vlan_interface_uppers_test
 	bridge_extern_learn_test
+	neigh_offload_test
 	devlink_reload_test
 "
 NUM_NETIFS=2
@@ -561,6 +562,31 @@ bridge_extern_learn_test()
 	ip link del dev br0
 }
 
+neigh_offload_test()
+{
+	# Test that IPv4 and IPv6 neighbour entries are marked as offloaded
+	RET=0
+
+	ip -4 address add 192.0.2.1/24 dev $swp1
+	ip -6 address add 2001:db8:1::1/64 dev $swp1
+
+	ip -4 neigh add 192.0.2.2 lladdr de:ad:be:ef:13:37 nud perm dev $swp1
+	ip -6 neigh add 2001:db8:1::2 lladdr de:ad:be:ef:13:37 nud perm \
+		dev $swp1
+
+	ip -4 neigh show dev $swp1 | grep 192.0.2.2 | grep -q offload
+	check_err $? "ipv4 neigh entry not marked as offloaded when should"
+	ip -6 neigh show dev $swp1 | grep 2001:db8:1::2 | grep -q offload
+	check_err $? "ipv6 neigh entry not marked as offloaded when should"
+
+	log_test "neighbour offload indication"
+
+	ip -6 neigh del 2001:db8:1::2 dev $swp1
+	ip -4 neigh del 192.0.2.2 dev $swp1
+	ip -6 address del 2001:db8:1::1/64 dev $swp1
+	ip -4 address del 192.0.2.1/24 dev $swp1
+}
+
 devlink_reload_test()
 {
 	# Test that after executing all the above configuration tests, a