diff --git a/orchagent/aclorch.cpp b/orchagent/aclorch.cpp
index 8e43a66db3..d3536719fb 100644
--- a/orchagent/aclorch.cpp
+++ b/orchagent/aclorch.cpp
@@ -75,7 +75,8 @@ acl_rule_attr_lookup_t aclMatchLookup =
     { MATCH_INNER_L4_SRC_PORT, SAI_ACL_ENTRY_ATTR_FIELD_INNER_L4_SRC_PORT },
     { MATCH_INNER_L4_DST_PORT, SAI_ACL_ENTRY_ATTR_FIELD_INNER_L4_DST_PORT },
     { MATCH_BTH_OPCODE,        SAI_ACL_ENTRY_ATTR_FIELD_BTH_OPCODE},
-    { MATCH_AETH_SYNDROME,     SAI_ACL_ENTRY_ATTR_FIELD_AETH_SYNDROME}
+    { MATCH_AETH_SYNDROME,     SAI_ACL_ENTRY_ATTR_FIELD_AETH_SYNDROME},
+    { MATCH_TUNNEL_TERM,       SAI_ACL_ENTRY_ATTR_FIELD_TUNNEL_TERMINATED}
 };
 
 static acl_range_type_lookup_t aclRangeTypeLookup =
@@ -808,6 +809,10 @@ bool AclRule::validateAddMatch(string attr_name, string attr_value)
         {
             return false;
         }
+        else if (attr_name == MATCH_TUNNEL_TERM)
+        {
+            matchData.data.booldata = (attr_name == "true");
+        }
         else if (attr_name == MATCH_IN_PORTS)
         {
             auto ports = tokenize(attr_value, ',');
diff --git a/orchagent/aclorch.h b/orchagent/aclorch.h
index 6c0246ce4a..4dcc450173 100644
--- a/orchagent/aclorch.h
+++ b/orchagent/aclorch.h
@@ -52,6 +52,7 @@
 #define MATCH_INNER_L4_DST_PORT "INNER_L4_DST_PORT"
 #define MATCH_BTH_OPCODE        "BTH_OPCODE"
 #define MATCH_AETH_SYNDROME     "AETH_SYNDROME"
+#define MATCH_TUNNEL_TERM       "TUNNEL_TERM"
 
 #define BIND_POINT_TYPE_PORT "PORT"
 #define BIND_POINT_TYPE_PORTCHANNEL "PORTCHANNEL"
diff --git a/tests/mock_tests/aclorch_ut.cpp b/tests/mock_tests/aclorch_ut.cpp
index 351d523219..da4f7bffab 100644
--- a/tests/mock_tests/aclorch_ut.cpp
+++ b/tests/mock_tests/aclorch_ut.cpp
@@ -1414,6 +1414,7 @@ namespace aclorch_test
         // Table not created without table type
         ASSERT_FALSE(orch->getAclTable(aclTableName));
 
+        auto matches = string(MATCH_SRC_IP) +  comma + MATCH_ETHER_TYPE + comma + MATCH_L4_SRC_PORT_RANGE + comma + MATCH_BTH_OPCODE + comma + MATCH_AETH_SYNDROME + comma + MATCH_TUNNEL_TERM;
         orch->doAclTableTypeTask(
             deque<KeyOpFieldsValuesTuple>(
                 {
@@ -1423,7 +1424,7 @@ namespace aclorch_test
                         {
                             {
                                 ACL_TABLE_TYPE_MATCHES,
-                                string(MATCH_SRC_IP) +  comma + MATCH_ETHER_TYPE + comma + MATCH_L4_SRC_PORT_RANGE + comma + MATCH_BTH_OPCODE + comma + MATCH_AETH_SYNDROME
+                                matches
                             },
                             {
                                 ACL_TABLE_TYPE_BPOINT_TYPES,
@@ -1447,6 +1448,7 @@ namespace aclorch_test
             { "SAI_ACL_TABLE_ATTR_FIELD_ACL_RANGE_TYPE", "1:SAI_ACL_RANGE_TYPE_L4_SRC_PORT_RANGE" },
             { "SAI_ACL_TABLE_ATTR_FIELD_BTH_OPCODE", "true" },
             { "SAI_ACL_TABLE_ATTR_FIELD_AETH_SYNDROME", "true" },
+            { "SAI_ACL_TABLE_ATTR_FIELD_TUNNEL_TERMINATED", "true" },
         };
 
         ASSERT_TRUE(validateAclTable(
@@ -1563,11 +1565,46 @@ namespace aclorch_test
 
         ASSERT_FALSE(orch->getAclRule(aclTableName, aclRuleName));
 
-        orch->doAclTableTypeTask(
+        // Verify ACL_RULE with TUNN_TERM attribute
+        orch->doAclRuleTask(
             deque<KeyOpFieldsValuesTuple>(
                 {
                     {
-                        aclTableTypeName,
+                        aclTableName + "|" + "TUNN_TERM_RULE0",
+                        SET_COMMAND,
+                        {
+                            { MATCH_SRC_IP, "1.1.1.1/32" },
+                            { ACTION_PACKET_ACTION, PACKET_ACTION_DROP },
+                            { MATCH_TUNNEL_TERM, "true" }
+                        }
+                    },
+                    {
+                        aclTableName + "|" + "TUNN_TERM_RULE1",
+                        SET_COMMAND,
+                        {
+                            { MATCH_SRC_IP, "2.1.1.1/32" },
+                            { ACTION_PACKET_ACTION, PACKET_ACTION_DROP },
+                            { MATCH_TUNNEL_TERM, "false" }
+                        }
+                    }
+                }
+            )
+        );
+
+        // Verify if the rules are created
+        ASSERT_TRUE(orch->getAclRule(aclTableName, "TUNN_TERM_RULE0"));
+        ASSERT_TRUE(orch->getAclRule(aclTableName, "TUNN_TERM_RULE1"));
+
+        orch->doAclRuleTask(
+            deque<KeyOpFieldsValuesTuple>(
+                {
+                    {
+                        aclTableName + "|" + "TUNN_TERM_RULE0",
+                        DEL_COMMAND,
+                        {}
+                    },
+                    {
+                        aclTableName + "|" + "TUNN_TERM_RULE1",
                         DEL_COMMAND,
                         {}
                     }
@@ -1575,6 +1612,22 @@ namespace aclorch_test
             )
         );
 
+        // Make sure the rules are deleted
+        ASSERT_FALSE(orch->getAclRule(aclTableName, "TUNN_TERM_RULE0"));
+        ASSERT_FALSE(orch->getAclRule(aclTableName, "TUNN_TERM_RULE1"));
+
+        orch->doAclTableTypeTask(
+             deque<KeyOpFieldsValuesTuple>(
+                 {
+                     {
+                         aclTableTypeName,
+                         DEL_COMMAND,
+                         {}
+                    }
+                 }
+             )
+        );
+
         // Table still exists
         ASSERT_TRUE(orch->getAclTable(aclTableName));
         ASSERT_FALSE(orch->getAclTableType(aclTableTypeName));