diff --git a/charts/cluster-api-runtime-extensions-nutanix/addons/cni/cilium/values-template.yaml b/charts/cluster-api-runtime-extensions-nutanix/addons/cni/cilium/values-template.yaml
index ea0f46571..a9c948382 100644
--- a/charts/cluster-api-runtime-extensions-nutanix/addons/cni/cilium/values-template.yaml
+++ b/charts/cluster-api-runtime-extensions-nutanix/addons/cni/cilium/values-template.yaml
@@ -36,4 +36,8 @@ envoy:
 k8sServiceHost: auto
 {{- if .EnableKubeProxyReplacement }}
 kubeProxyReplacement: true
+tunnelProtocol: geneve
+loadBalancer:
+  mode: dsr
+  dsrDispatch: geneve
 {{- end }}