diff --git a/doc/source/ovn/faq/index.rst b/doc/source/ovn/faq/index.rst
index c00946343ff..2f1ec337adc 100644
--- a/doc/source/ovn/faq/index.rst
+++ b/doc/source/ovn/faq/index.rst
@@ -108,4 +108,14 @@ address.  When the HA manager detects a failure of the master, the
 virtual IP would be moved and the passive replica would become the
 new master.
 
+**Q: Which core OVN version should I use for my OpenStack installation?**
+
+OpenStack doesn't set explicit version requirements for OVN installation, but
+it's recommended to follow at least the version that is used in upstream CI,
+e.g.:
+https://github.com/openstack/neutron/blob/4d31284373e89cb2b29539d6718f90a4c4d8284b/zuul.d/tempest-singlenode.yaml#L310
+
+Some new features may require the latest core OVN version to work. For example,
+to be able to use VXLAN network type, one must run OVN 20.09+.
+
 See :doc:`/admin/ovn/ovn` for links to more details on OVN's architecture.
diff --git a/neutron/plugins/ml2/drivers/ovn/mech_driver/mech_driver.py b/neutron/plugins/ml2/drivers/ovn/mech_driver/mech_driver.py
index e94d03358fe..0da02ebe9f4 100644
--- a/neutron/plugins/ml2/drivers/ovn/mech_driver/mech_driver.py
+++ b/neutron/plugins/ml2/drivers/ovn/mech_driver/mech_driver.py
@@ -406,6 +406,7 @@ class OVNMechanismDriver(api.MechanismDriver):
         return (network_type in [const.TYPE_LOCAL,
                                  const.TYPE_FLAT,
                                  const.TYPE_GENEVE,
+                                 const.TYPE_VXLAN,
                                  const.TYPE_VLAN])
 
     def _validate_network_segments(self, network_segments):
diff --git a/neutron/tests/unit/plugins/ml2/drivers/ovn/mech_driver/test_mech_driver.py b/neutron/tests/unit/plugins/ml2/drivers/ovn/mech_driver/test_mech_driver.py
index 793b65ad59a..0d005d68a7e 100644
--- a/neutron/tests/unit/plugins/ml2/drivers/ovn/mech_driver/test_mech_driver.py
+++ b/neutron/tests/unit/plugins/ml2/drivers/ovn/mech_driver/test_mech_driver.py
@@ -649,24 +649,26 @@ class TestOVNMechanismDriver(test_plugin.Ml2PluginV2TestCase):
         # Test supported network types.
         fake_network_context = self._create_fake_network_context('local')
         self.mech_driver.create_network_precommit(fake_network_context)
+
         fake_network_context = self._create_fake_network_context(
             'flat', physical_network='physnet')
         self.mech_driver.update_network_precommit(fake_network_context)
+
         fake_network_context = self._create_fake_network_context(
             'geneve', segmentation_id=10)
         self.mech_driver.create_network_precommit(fake_network_context)
+
         fake_network_context = self._create_fake_network_context(
             'vlan', physical_network='physnet', segmentation_id=11)
         self.mech_driver.update_network_precommit(fake_network_context)
         fake_mp_network_context = self._create_fake_mp_network_context()
         self.mech_driver.create_network_precommit(fake_mp_network_context)
 
-        # Test unsupported network types.
         fake_network_context = self._create_fake_network_context(
             'vxlan', segmentation_id=12)
-        self.assertRaises(n_exc.InvalidInput,
-                          self.mech_driver.create_network_precommit,
-                          fake_network_context)
+        self.mech_driver.create_network_precommit(fake_network_context)
+
+        # Test unsupported network types.
         fake_network_context = self._create_fake_network_context(
             'gre', segmentation_id=13)
         self.assertRaises(n_exc.InvalidInput,
diff --git a/releasenotes/notes/vxlan-ovn-support-89f71332fa41952c.yaml b/releasenotes/notes/vxlan-ovn-support-89f71332fa41952c.yaml
new file mode 100644
index 00000000000..a7a10c9838b
--- /dev/null
+++ b/releasenotes/notes/vxlan-ovn-support-89f71332fa41952c.yaml
@@ -0,0 +1,5 @@
+---
+features:
+  - |
+    OVN driver now supports VXLAN type for networks. This requires
+    OVN version to be 20.09 or newer.