diff --git a/README.md b/README.md
index 359e6c4ac..88d19cfaa 100644
--- a/README.md
+++ b/README.md
@@ -129,3 +129,5 @@ Please refer to the README-HELM.md
 43. ~~vrouter agent entrypoint: add ability to configure metadata_proxy_secret=contrail in [METADATA]~~
 44. Sort out with KUBERNETES_public_fip_pool
 45. ~~Ubuntu containers~~
+46. Introduce base container for agent and move agent specific functions to it
+47. Remove net-watchdog contrail as the problem with vhost0 rest by agent be solved (dpdk case)
diff --git a/common.env.sample b/common.env.sample
index 6f87319c5..0741b3b09 100644
--- a/common.env.sample
+++ b/common.env.sample
@@ -156,7 +156,7 @@
 
 # ---
 # Agent mode. For DPDK case should be set to 'dpdk'.
-#AGENT_MODE=${AGENT_MODE:-'vrouter'}
+#AGENT_MODE=${AGENT_MODE:-'nic'}
 
 # ---
 # Cpu coremask, it is used for DPDK mode for cores pinning
diff --git a/containers/agent/net-watchdog/Dockerfile b/containers/agent/net-watchdog/Dockerfile
new file mode 100644
index 000000000..b0eae56bd
--- /dev/null
+++ b/containers/agent/net-watchdog/Dockerfile
@@ -0,0 +1,18 @@
+ARG CONTRAIL_REGISTRY=localhost:5000
+ARG CONTRAIL_CONTAINER_TAG=4.1.0.0-6-centos7-newton
+FROM ${CONTRAIL_REGISTRY}/contrail-base:${CONTRAIL_CONTAINER_TAG}
+
+RUN yum install -y \
+        ethtool pciutils initscripts NetworkManager \
+        contrail-vrouter-utils \
+    yum clean all && \
+    rm -rf /var/cache/yum && \
+    ldconfig
+
+COPY entrypoint.sh /
+
+ENTRYPOINT ["/entrypoint.sh"]
+
+LABEL net.juniper.nodemgr.filter.name=contrail-vrouter-network-init
+LABEL net.juniper.contrail=agent
+LABEL net.juniper.node=agent
diff --git a/containers/agent/net-watchdog/entrypoint.sh b/containers/agent/net-watchdog/entrypoint.sh
new file mode 100755
index 000000000..f6cd532c1
--- /dev/null
+++ b/containers/agent/net-watchdog/entrypoint.sh
@@ -0,0 +1,24 @@
+#!/bin/bash
+
+source /common.sh
+source /agent-functions.sh
+
+TRACK_VHOST0=${TRACK_VHOST0:-'true'}
+TRACK_VHOST0_PAUSE=${TRACK_VHOST0_PAUSE:-5}
+
+while (true) ; do
+
+    echo "INFO: ip address show:"
+    ip address show
+
+    init_vhost0
+
+    if [[ "$TRACK_VHOST0" != 'true' ]] ; then
+        echo "INFO: TRACK_VHOST0 is $TRACK_VHOST0. Stop stracking."
+        break
+    fi
+    echo "INFO: wait for $TRACK_VHOST0_PAUSE seconds..."
+    sleep $TRACK_VHOST0_PAUSE
+done
+
+exec $@
diff --git a/containers/agent/vrouter-dpdk/entrypoint.sh b/containers/agent/vrouter-dpdk/entrypoint.sh
index 07e813262..deaf114a3 100755
--- a/containers/agent/vrouter-dpdk/entrypoint.sh
+++ b/containers/agent/vrouter-dpdk/entrypoint.sh
@@ -3,13 +3,25 @@
 source /common.sh
 
 echo "INFO: agent started in $AGENT_MODE mode"
-IFS=' ' read -r phys_int phys_int_mac <<< $(get_physical_nic_and_mac)
-pci_address=$(get_pci_address_for_nic $phys_int)
+
+function assert_file() {
+    local file=$1
+    if [[ ! -f "$file" ]] ; then
+        echo "ERROR: there is no file $file"
+        exit -1
+    fi
+}
+
+phys_int=`get_default_physical_iface`
+binding_data_dir='/var/run/vrouter'
+assert_file "$binding_data_dir/${phys_int}_mac"
+phys_int_mac=`cat "$binding_data_dir/${phys_int}_mac"`
+assert_file "$binding_data_dir/${phys_int}_pci"
+pci_address=`cat "$binding_data_dir/${phys_int}_pci"`
 echo "INFO: Physical interface: $phys_int, mac=$phys_int_mac, pci=$pci_address"
 
-VROUTER_GATEWAY=${VROUTER_GATEWAY:-`get_default_gateway_for_nic $phys_int`}
-vrouter_cidr=$(get_cidr_for_nic $phys_int)
-echo "INFO: $phys_int cidr $vrouter_cidr, gateway $VROUTER_GATEWAY"
+# ensure device is bind to dpdk driver
+wait_device_for_driver $DPDK_UIO_DRIVER $pci_address
 
 # TODO: consider to avoid taskset here and leave to manage by Docker
 cmd="$@"
@@ -33,23 +45,7 @@ mkdir -p -m 777 /var/crashes
 rm -f '/run/.rte_config'
 
 # set maximum socket buffer size to (max hold flows entries * 9160 bytes)
-sysctl -w net.core.wmem_max=9160000
-
-# bind iface to dpdk uio driver before start dpdk agent
-bind_dev_to_driver $DPDK_UIO_DRIVER $phys_int
-
-function background_init() {
-    wait_dpdk_agent_start
-    if [[ -n $cmd ]] ; then
-        local pname=`echo $cmd | cut -d ' ' -f 1`
-        enable_hugepages_to_coredump "$pname"
-    fi
-    create_vhost0_dpdk $phys_int $phys_int_mac $vrouter_cidr $VROUTER_GATEWAY
-}
-
-# TODO: tart backgound job to enable hugepase to coredump
-# and initialize vhost0
-background_init &
+set_ctl net.core.wmem_max 9160000
 
 echo "INFO: exec '$real_cmd'"
 exec $real_cmd
diff --git a/containers/agent/vrouter-init-kernel-dpdk/Dockerfile.centos b/containers/agent/vrouter-init-kernel-dpdk/Dockerfile.centos
index 49c2109fe..1530cfb08 100644
--- a/containers/agent/vrouter-init-kernel-dpdk/Dockerfile.centos
+++ b/containers/agent/vrouter-init-kernel-dpdk/Dockerfile.centos
@@ -2,7 +2,10 @@ ARG CONTRAIL_REGISTRY=localhost:5000
 ARG CONTRAIL_CONTAINER_TAG=4.1.0.0-6-centos7-newton
 FROM ${CONTRAIL_REGISTRY}/contrail-base:${CONTRAIL_CONTAINER_TAG}
 
-RUN yum clean all -y && \
+RUN yum install -y \
+        ethtool pciutils sysvinit-tools \
+        contrail-vrouter-utils contrail-vrouter-dpdk-init && \
+    yum clean all -y && \
     rm -rf /var/cache/yum
 
 COPY entrypoint.sh /
diff --git a/containers/agent/vrouter-init-kernel-dpdk/entrypoint.sh b/containers/agent/vrouter-init-kernel-dpdk/entrypoint.sh
index bfa890a29..50816c5e2 100755
--- a/containers/agent/vrouter-init-kernel-dpdk/entrypoint.sh
+++ b/containers/agent/vrouter-init-kernel-dpdk/entrypoint.sh
@@ -1,60 +1,15 @@
-#!/bin/bash -x
+#!/bin/bash
 
 source /common.sh
 
 HUGE_PAGES_DIR=${HUGE_PAGES_DIR:-'/dev/hugepages'}
-if [[ ! -d "$HUGE_PAGES_DIR" ]] ; then
-    echo "WARNING: There is no $HUGE_PAGES_DIR mounted from host. Try to create and mount hugetlbfs."
-    if ! mkdir -p $HUGE_PAGES_DIR ; then
-        echo "ERROR: failed to create $HUGE_PAGES_DIR"
-        exit -1
-    fi
-    if ! mount -t hugetlbfs hugetlbfs $HUGE_PAGES_DIR ; then
-        echo "ERROR: failed to mount hugetlbfs to $HUGE_PAGES_DIR"
-        exit -1
-    fi
-fi
-
-if [[ ! -d "$HUGE_PAGES_DIR" ]]  ; then
-    echo "ERROR: There is no $HUGE_PAGES_DIR. Probably HugeTables are anuvailable on the host."
-    exit -1
-fi
-
-function set_ctl() {
-    local var=$1
-    local value=$2
-    if grep -q "^$var" /etc/sysctl.conf ; then
-        sed -i "s/^$var.*=.*/$var=$value/g"  /etc/sysctl.conf
-    else
-        echo "$var=$value" >> /etc/sysctl.conf
-    fi
-}
+ensure_hugepages $HUGE_PAGES_DIR
 
 set_ctl vm.nr_hugepages ${HUGE_PAGES}
 set_ctl vm.max_map_count 128960
 set_ctl net.ipv4.tcp_keepalive_time 5
 set_ctl net.ipv4.tcp_keepalive_probes 5
 set_ctl net.ipv4.tcp_keepalive_intvl 1
-sysctl --system
-
-function load_kernel_module() {
-    local module=$1
-    shift 1
-    local opts=$@
-    echo "INFO: load $module kernel module"
-    if ! modprobe -v "$module" $opts ; then
-        echo "ERROR: failed to load $module driver"
-        exit -1
-    fi
-}
-
-function unload_kernel_module() {
-    local module=$1
-    echo "INFO: unload $module kernel module"
-    if ! rmmod $module ; then
-        echo "WARNING: Failed to unload $module driver"
-    fi
-}
 
 load_kernel_module uio
 load_kernel_module "$DPDK_UIO_DRIVER"
@@ -64,4 +19,31 @@ if ! is_ubuntu_xenial && ! is_centos; then
     load_kernel_module rte_kni kthread_mode=multiple
 fi
 
-exec "$@"
+echo "INFO: agent $AGENT_MODE mode"
+IFS=' ' read -r phys_int phys_int_mac <<< $(get_physical_nic_and_mac)
+pci_address=$(get_pci_address_for_nic $phys_int)
+default_gw_metric=`get_default_gateway_for_nic_metric $phys_int`
+echo "INFO: Physical interface: $phys_int, mac=$phys_int_mac, pci=$pci_address"
+
+# save data for next usage in network init container
+# TODO: check that data valid for the case if container is re-run again by some reason
+addrs=$(get_ips_for_nic $phys_int)
+gateway=${VROUTER_GATEWAY:-"$default_gw_metric"}
+binding_data_dir='/var/run/vrouter'
+mkdir -p $binding_data_dir
+echo "INFO: addrs=[$addrs], gateway=$gateway"
+echo "$phys_int" > $binding_data_dir/${phys_int}_nic
+echo "$phys_int_mac" > $binding_data_dir/${phys_int}_mac
+echo "$pci_address" > $binding_data_dir/${phys_int}_pci
+echo "$addrs" > $binding_data_dir/${phys_int}_ip_addresses
+echo "$gateway" > $binding_data_dir/${phys_int}_gateway
+
+if [[ "$phys_int" == "vhost0" ]] ; then
+    echo "ERROR: it is not expected the vhost0 is up and running"
+    exit -1
+fi
+
+# bind iface to dpdk uio driver before start dpdk agent
+bind_devs_to_driver $DPDK_UIO_DRIVER $phys_int
+
+exec $@
diff --git a/containers/agent/vrouter-init-kernel/Dockerfile.centos b/containers/agent/vrouter-init-kernel/Dockerfile.centos
index a53f242d4..0e1234a06 100644
--- a/containers/agent/vrouter-init-kernel/Dockerfile.centos
+++ b/containers/agent/vrouter-init-kernel/Dockerfile.centos
@@ -2,7 +2,7 @@ ARG CONTRAIL_REGISTRY=localhost:5000
 ARG CONTRAIL_CONTAINER_TAG=4.1.0.0-6-centos7-newton
 FROM ${CONTRAIL_REGISTRY}/contrail-base:${CONTRAIL_CONTAINER_TAG}
 
-RUN yum install -y contrail-vrouter contrail-vrouter-utils initscripts dhclient && \
+RUN yum install -y contrail-vrouter contrail-vrouter-utils && \
     yum clean all && \
     rm -rf /var/cache/yum
 
diff --git a/containers/agent/vrouter-init-kernel/entrypoint.sh b/containers/agent/vrouter-init-kernel/entrypoint.sh
index cafd13028..52e36c84e 100755
--- a/containers/agent/vrouter-init-kernel/entrypoint.sh
+++ b/containers/agent/vrouter-init-kernel/entrypoint.sh
@@ -55,88 +55,4 @@ else
   fi
 fi
 
-# VRouter specific code starts here
-function pkt_setup () {
-    for f in /sys/class/net/$1/queues/rx-*
-    do
-        q="$(echo $f | cut -d '-' -f2)"
-        r=$(($q%32))
-        s=$(($q/32))
-        ((mask=1<<$r))
-        str=(`printf "%x" $mask`)
-        if [ $s -gt 0 ]; then
-            for ((i=0; i < $s; i++))
-            do
-                str+=,00000000
-            done
-        fi
-        echo $str > $f/rps_cpus
-    done
-    ip link set dev $1 up
-}
-
-function insert_vrouter() {
-    if [ -f /sys/class/net/pkt1/queues/rx-0/rps_cpus ]; then
-        pkt_setup pkt1
-    fi
-    if [ -f /sys/class/net/pkt2/queues/rx-0/rps_cpus ]; then
-        pkt_setup pkt2
-    fi
-    if [ -f /sys/class/net/pkt3/queues/rx-0/rps_cpus ]; then
-        pkt_setup pkt3
-    fi
-    vif --create vhost0 --mac $phys_int_mac
-    vif --add $phys_int --mac $phys_int_mac --vrf 0 --vhost-phys --type physical
-    vif --add vhost0 --mac $phys_int_mac --vrf 0 --type vhost --xconnect $phys_int
-    return 0
-}
-
-echo "INFO: ip address show:"
-ip address show
-
-IFS=' ' read -r phys_int phys_int_mac <<< $(get_physical_nic_and_mac)
-echo "INFO: Physical interface: $phys_int, mac=$phys_int_mac"
-
-# Probe vhost0
-vrouter_cidr="$(get_cidr_for_nic vhost0)"
-
-if [[ -e /etc/sysconfig/network-scripts/ifcfg-${phys_int} && ! -e /etc/sysconfig/network-scripts/ifcfg-vhost0 ]]; then
-    echo "INFO: creating vhost0"
-    insert_vrouter
-    ifdown ${phys_int}
-    cp -f /etc/sysconfig/network-scripts/ifcfg-${phys_int} /etc/sysconfig/network-scripts/ifcfg-vhost0
-    sed -i "s/${phys_int}/vhost0/g" /etc/sysconfig/network-scripts/ifcfg-vhost0
-    sed -ri "/(DEVICE|ONBOOT|NM_CONTROLLED)/! s/.*/#commented_by_contrail& /" /etc/sysconfig/network-scripts/ifcfg-${phys_int}
-    ifup ${phys_int}
-    ifup vhost0
-    while IFS= read -r line
-    do
-      ip route del $line
-    done < <(ip route sh |grep ${phys_int})
-elif [[ "$vrouter_cidr" == '' ]] ; then
-    echo "INFO: creating vhost0"
-    addrs=$(ip addr show dev $phys_int | grep "inet" | grep -oP "[0-9a-f\:\.]*/[0-9]* brd [0-9\.]*|[0-9a-f\:\.]*/[0-9]*")
-    default_gw=`ip route show dev $phys_int | grep default | head -n 1 | awk '{print $3}'`
-    default_gw_metric=`ip route show dev $phys_int | grep default | head -1 | grep -o "metric [0-9]*"`
-    VROUTER_GATEWAY=${VROUTER_GATEWAY:-"$default_gw $default_gw_metric"}
-    insert_vrouter
-
-    # TODO: switch off dhcp on phys_int
-    echo "INFO: Changing physical interface to vhost in ip table"
-    ip link set vhost0 up
-    echo "$addrs" | while IFS= read -r line ; do
-        echo "Processing $line"
-        addr_to_del=`echo $line | cut -d ' ' -f 1`
-        addr_to_add=`echo $line | sed 's/brd/broadcast/'`
-        ip address delete $addr_to_del dev $phys_int
-        ip address add $addr_to_add dev vhost0
-        if [[ -n "$VROUTER_GATEWAY" ]]; then
-            echo "INFO: set default gateway"
-            ip route add default via $VROUTER_GATEWAY
-        fi
-    done
-else
-    echo "INFO: vhost0 is already up"
-fi
-
 exec $@
diff --git a/containers/agent/vrouter/Dockerfile.centos b/containers/agent/vrouter/Dockerfile.centos
index ca8893561..5f5380066 100644
--- a/containers/agent/vrouter/Dockerfile.centos
+++ b/containers/agent/vrouter/Dockerfile.centos
@@ -2,7 +2,8 @@ ARG CONTRAIL_REGISTRY=localhost:5000
 ARG CONTRAIL_CONTAINER_TAG=4.1.0.0-6-centos7-newton
 FROM ${CONTRAIL_REGISTRY}/contrail-base:${CONTRAIL_CONTAINER_TAG}
 
-RUN yum install -y ethtool contrail-vrouter-agent contrail-vrouter-utils \
+RUN yum install -y ethtool \
+      contrail-vrouter-agent contrail-vrouter-utils \
       sudo python-opencontrail-vrouter-netns python-contrail-vrouter-api && \
     yum clean all && \
     rm -rf /var/cache/yum && \
diff --git a/containers/agent/vrouter/entrypoint.sh b/containers/agent/vrouter/entrypoint.sh
index 5bbd74b52..9de2fe451 100755
--- a/containers/agent/vrouter/entrypoint.sh
+++ b/containers/agent/vrouter/entrypoint.sh
@@ -1,32 +1,56 @@
 #!/bin/bash
 
 source /common.sh
+source /agent-functions.sh
 
 HYPERVISOR_TYPE=${HYPERVISOR_TYPE:-'kvm'}
 VROUTER_HOSTNAME=${VROUTER_HOSTNAME:-${DEFAULT_HOSTNAME}}
 
 echo "INFO: agent started in $AGENT_MODE mode"
-IFS=' ' read -r phys_int phys_int_mac <<< $(get_physical_nic_and_mac)
-pci_address=$(get_pci_address_for_nic $phys_int)
-echo "INFO: Physical interface: $phys_int, mac=$phys_int_mac, pci=$pci_address"
 
-# For dpdk case is is expected vhost0 is down here
-# but for regular case it shold be up
-if is_dpdk ; then
-    nic_to_read_net_parameters=$phys_int
-else
-    nic_to_read_net_parameters='vhost0'
-fi
-VROUTER_GATEWAY=${VROUTER_GATEWAY:-`get_default_gateway_for_nic $nic_to_read_net_parameters`}
-vrouter_cidr=$(get_cidr_for_nic $nic_to_read_net_parameters)
-echo "INFO: $nic_to_read_net_parameters cidr $vrouter_cidr, gateway $VROUTER_GATEWAY"
+# wait vhost0
+while (true) ; do
+    # TODO: net-watchdog container does init for dpdk case,
+    # because vhost0 is re-created each time dpdk container
+    # restarted, so its initialization is needed at runtime,
+    # not only at init time. here is the TODO to remove
+    # that container after problem be solved at agent level.
+    # For Non dpdk case jsut init vhost here,
+    # because net-watchdog is not needed at all.
+    if ! is_dpdk ; then
+        init_vhost0
+    fi
+    if ! wait_nic vhost0 ; then
+	sleep 2
+        continue
+    fi
+
+    # TODO: avoid duplication of reading parameters with init_vhost0
+    IFS=' ' read -r phys_int phys_int_mac <<< $(get_physical_nic_and_mac)
+    if ! is_dpdk ; then
+        pci_address=$(get_pci_address_for_nic $phys_int)
+    else
+        binding_data_dir='/var/run/vrouter'
+        pci_address=`cat $binding_data_dir/${phys_int}_pci`
+    fi
+
+    VROUTER_GATEWAY=${VROUTER_GATEWAY:-`get_default_gateway_for_nic 'vhost0'`}
+    vrouter_cidr=$(get_cidr_for_nic 'vhost0')
+    echo "INFO: Physical interface: $phys_int, mac=$phys_int_mac, pci=$pci_address"
+    echo "INFO: vhost0 cidr $vrouter_cidr, gateway $VROUTER_GATEWAY"
+
+    if [[ -n "$vrouter_cidr" ]] ; then
+        break
+    fi
+done
+
 if [[ -z "$vrouter_cidr" ]] ; then
-    echo "ERROR: $nic_to_read_net_parameters interface is down or has no assigned IP"
+    echo "ERROR: vhost0 interface is down or has no assigned IP"
     exit -1
 fi
 vrouter_ip=${vrouter_cidr%/*}
 if [[ -z "$VROUTER_GATEWAY" ]] ; then
-    echo "ERROR: VROUTER_GATEWAY is empty or there is no default route for $nic_to_read_net_parameters"
+    echo "ERROR: VROUTER_GATEWAY is empty or there is no default route for vhost0"
     exit -1
 fi
 
@@ -36,12 +60,10 @@ if is_dpdk ; then
 platform=${AGENT_MODE}
 physical_interface_mac = $phys_int_mac
 physical_interface_address = $pci_address
-physical_uio_driver=${DPDK_UIO_DRIVER}
+physical_uio_driver = ${DPDK_UIO_DRIVER}
 EOM
 fi
 
-mkdir -p -m 777 /var/crashes
-
 echo "INFO: Preparing /etc/contrail/contrail-vrouter-agent.conf"
 cat << EOM > /etc/contrail/contrail-vrouter-agent.conf
 [CONTROL-NODE]
@@ -86,16 +108,19 @@ docker_command=/usr/bin/opencontrail-vrouter-docker
 [HYPERVISOR]
 type = $HYPERVISOR_TYPE
 EOM
-echo /etc/contrail/contrail-vrouter-agent.conf
+echo "INFO: /etc/contrail/contrail-vrouter-agent.conf"
 cat /etc/contrail/contrail-vrouter-agent.conf
 
 set_vnc_api_lib_ini
 
+# TODO: move it to special provision container
 function provision_node_background() {
     wait_for_contrail_api
     provision_node provision_vrouter.py $vrouter_ip $VROUTER_HOSTNAME
 }
 
+mkdir -p -m 777 /var/crashes
+
 provision_node_background &
 
-exec "$@"
+exec $@
diff --git a/containers/base/agent-functions.sh b/containers/base/agent-functions.sh
new file mode 100644
index 000000000..34918a677
--- /dev/null
+++ b/containers/base/agent-functions.sh
@@ -0,0 +1,97 @@
+#!/bin/bash
+
+
+function init_vhost0() {
+    # Probe vhost0
+    local vrouter_cidr="$(get_cidr_for_nic vhost0)"
+    if [[ "$vrouter_cidr" != '' ]] ; then
+        echo "INFO: vhost0 is already up"
+        return 0
+    fi
+
+    local phys_int=''
+    local phys_int_mac=''
+    local addrs=''
+    local gateway=''
+    if ! is_dpdk ; then
+        # NIC case
+        IFS=' ' read -r phys_int phys_int_mac <<< $(get_physical_nic_and_mac)
+        if [[ "$vrouter_cidr" == '' ]] ; then
+            addrs=$(get_ips_for_nic $phys_int)
+            local default_gw_metric=`get_default_gateway_for_nic_metric $phys_int`
+            gateway=${VROUTER_GATEWAY:-"$default_gw_metric"}
+        fi
+        echo "INFO: creating vhost0 for nic mode: nic: $phys_int, mac=$phys_int_mac"
+        if ! create_vhost0 $phys_int $phys_int_mac ; then
+            return 1
+        fi
+    else
+        # DPDK case
+        # TODO: rework someow config pathching..
+        if ! wait_dpdk_agent_start ; then
+            return 1
+        fi
+        phys_int=`get_default_physical_iface`
+        local binding_data_dir='/var/run/vrouter'
+        phys_int_mac=`cat $binding_data_dir/${phys_int}_mac`
+        local pci_address=`cat $binding_data_dir/${phys_int}_pci`
+            cat << EOM > /etc/contrail/contrail-vrouter-agent.conf
+[DEFAULT]
+platform=${AGENT_MODE}
+physical_interface_mac = $phys_int_mac
+physical_interface_address = $pci_address
+physical_uio_driver = ${DPDK_UIO_DRIVER}
+EOM
+        if [[ "$vrouter_cidr" == '' ]] ; then
+            addrs=`cat $binding_data_dir/${phys_int}_ip_addresses`
+            gateway=${VROUTER_GATEWAY:-"$(cat $binding_data_dir/${phys_int}_gateway)"}
+        fi
+        echo "INFO: creating vhost0 for dpdk mode: nic: $phys_int, mac=$phys_int_mac"
+        if ! create_vhost0_dpdk $phys_int $phys_int_mac ; then
+            return
+        fi
+    fi
+
+    if [[ -e /etc/sysconfig/network-scripts/ifcfg-${phys_int} ]]; then
+        echo "INFO: creating ifcfg-vhost0 and initialize it via ifup"
+        if ! is_dpdk ; then
+            ifdown ${phys_int}
+        fi
+        pushd /etc/sysconfig/network-scripts/
+        if [[ ! -f "ifcfg-${phys_int}.contrail.org" ]] ; then
+            cp -f ifcfg-${phys_int} ifcfg-${phys_int}.contrail.org
+            sed -ri "/(DEVICE|ONBOOT|NM_CONTROLLED)/! s/.*/#commented_by_contrail& /" ifcfg-${phys_int}
+        fi
+        if [[ ! -f ifcfg-vhost0 ]] ; then
+            sed "s/${phys_int}/vhost0/g" ifcfg-${phys_int}.contrail.org > ifcfg-vhost0
+            if is_dpdk ; then
+                sed -ri "/NM_CONTROLLED/ s/.*/#commented_by_contrail& /" ifcfg-vhost0
+                echo 'NM_CONTROLLED="no"' >> ifcfg-vhost0
+            fi
+        fi
+        popd
+        if ! is_dpdk ; then
+            ifup ${phys_int}
+        fi
+        ifup vhost0
+        while IFS= read -r line ; do
+            ip route del $line
+        done < <(ip route sh | grep ${phys_int})
+    else
+        echo "INFO: there is no ifcfg-$phys_int, so initialize vhost0 manually"
+        # TODO: switch off dhcp on phys_int
+        echo "INFO: Changing physical interface to vhost in ip table"
+        echo "$addrs" | while IFS= read -r line ; do
+            if ! is_dpdk ; then
+                addr_to_del=`echo $line | cut -d ' ' -f 1`
+                ip address delete $addr_to_del dev $phys_int
+            fi
+            local addr_to_add=`echo $line | sed 's/brd/broadcast/'`
+            ip address add $addr_to_add dev vhost0
+        done
+        if [[ -n "$gateway" ]]; then
+            echo "INFO: set default gateway"
+            ip route add default via $gateway
+        fi
+    fi
+}
diff --git a/containers/base/common.sh b/containers/base/common.sh
index 011eed9f6..de315e8a3 100644
--- a/containers/base/common.sh
+++ b/containers/base/common.sh
@@ -159,7 +159,7 @@ sandesh_certfile=${SANDESH_CERTFILE}
 sandesh_ca_cert=${SANDESH_CA_CERT}
 EOM
 
-AGENT_MODE=${AGENT_MODE:-'vrouter'}
+AGENT_MODE=${AGENT_MODE:-'nic'}
 DPDK_UIO_DRIVER=${DPDK_UIO_DRIVER:-'uio_pci_generic'}
 CPU_CORE_MASK=${CPU_CORE_MASK:-'0x01'}
 HUGE_PAGES=${HUGE_PAGES:-1024}
diff --git a/containers/general-base/functions.sh b/containers/general-base/functions.sh
index edb7d4562..c00205f3b 100644
--- a/containers/general-base/functions.sh
+++ b/containers/general-base/functions.sh
@@ -62,6 +62,11 @@ function get_cidr_for_nic() {
   ip addr show dev $nic | grep "inet .*/.* brd " | awk '{print $2}'
 }
 
+function get_ips_for_nic() {
+    local nic=$1
+    ip addr show dev $nic | grep "inet" | grep -oP "[0-9a-f\:\.]*/[0-9]* brd [0-9\.]*|[0-9a-f\:\.]*/[0-9]*"
+}
+
 function get_default_ip() {
   local nic=$(get_default_nic)
   get_cidr_for_nic $nic | cut -d '/' -f 1
@@ -72,6 +77,13 @@ function get_default_gateway_for_nic() {
   ip route show dev $nic | grep default | head -n 1 | awk '{print $3}'
 }
 
+function get_default_gateway_for_nic_metric() {
+    local nic=$1
+    local default_gw=`get_default_gateway_for_nic $nic`
+    local default_gw_metric=`ip route show dev $nic | grep default | head -1 | grep -o "metric [0-9]*"`
+    echo "$default_gw $default_gw_metric"
+}
+
 function find_my_ip_and_order_for_node() {
   local server_typ=$1_NODES
   local server_list=''
@@ -169,12 +181,18 @@ function get_physical_nic_and_mac()
     # so try to find physical nic by MAC (which should be
     # the same as in vhost0)
     nic=`vif --list | grep "Type:Physical HWaddr:${mac}" -B1 | head -1 | awk '{print($3)}'`
-    local _mac=$(get_iface_mac $nic)
-    if [[ -n "$_mac" ]] ; then
-        mac=$_mac
+    if [[ -n "$nic" && ! "$nic" =~ ^[0-9] ]] ; then
+        # NIC case, for DPDK case nic is number, so use mac from vhost0 there
+        local _mac=$(get_iface_mac $nic)
+        if [[ -n "$_mac" ]] ; then
+            mac=$_mac
+        else
+            echo "ERROR: unsupported agent mode"
+            exit -1
+        fi
     else
-        # TODO: remove it after checking DPDK case
-        echo "INFO: DPDK case: there is no appropriate net-device for $nic"
+        # DPDK case, nic name is not exist, so set it to default
+        nic=$(get_default_physical_iface)
     fi
   else
     # there is no vhost0 device, so set to default
@@ -208,12 +226,13 @@ function enable_hugepages_to_coredump() {
 
 function wait_nic () {
     local nic=$1
-    local i=0
-    for i in {1..60} ; do
-        echo "INFO: Waiting for ${nic}... $i"
+    local probes=${2:-60}
+    while (( probes > 0 )) ; do
+        echo "INFO: Waiting for ${nic}... tries left $probes"
         if [[ -L /sys/class/net/${nic} ]] ; then
             return 0
         fi
+        (( probes -= 1))
         sleep 2
     done
     return 1
@@ -235,7 +254,7 @@ function wait_device_for_driver () {
 
 # TODO: move to agent specific file
 function is_dpdk_agent_running() {
-    lsof -ni:20914 > /dev/null 2>&1
+    netstat -ntl | awk '{print($4)}' | grep -q ':20914'
 }
 
 function wait_dpdk_agent_start() {
@@ -243,47 +262,84 @@ function wait_dpdk_agent_start() {
     for i in {1..60} ; do
         echo "INFO: wait DPDK agent to run... $i"
         if is_dpdk_agent_running ; then
-            return
+            return 0
         fi
         sleep 5
     done
-    echo "ERROR: DPDK agent is not started during timeout"
-    exit -1
+    return 1
+}
+
+# VRouter specific code starts here
+function pkt_setup () {
+    for f in /sys/class/net/$1/queues/rx-*
+    do
+        q="$(echo $f | cut -d '-' -f2)"
+        r=$(($q%32))
+        s=$(($q/32))
+        ((mask=1<<$r))
+        str=(`printf "%x" $mask`)
+        if [ $s -gt 0 ]; then
+            for ((i=0; i < $s; i++))
+            do
+                str+=,00000000
+            done
+        fi
+        echo $str > $f/rps_cpus
+    done
+    ip link set dev $1 up
+}
+
+function create_vhost0() {
+    local phys_int=$1
+    local phys_int_mac=$2
+    if [ -f /sys/class/net/pkt1/queues/rx-0/rps_cpus ]; then
+        pkt_setup pkt1
+    fi
+    if [ -f /sys/class/net/pkt2/queues/rx-0/rps_cpus ]; then
+        pkt_setup pkt2
+    fi
+    if [ -f /sys/class/net/pkt3/queues/rx-0/rps_cpus ]; then
+        pkt_setup pkt3
+    fi
+    vif --create vhost0 --mac $phys_int_mac
+    vif --add $phys_int --mac $phys_int_mac --vrf 0 --vhost-phys --type physical
+    vif --add vhost0 --mac $phys_int_mac --vrf 0 --type vhost --xconnect $phys_int
+    ip link set dev vhost0 address $phys_int_mac
+    ip link set dev vhost0 up
 }
 
 function create_vhost0_dpdk() {
-    local nic='vhost0'
     local phys_int=$1
     local phys_int_mac=$2
-    local vrouter_cidr=$3
-    local gateway=$4
-    # Wait nic to be configured by agent
-    if ! wait_nic $nic ; then
-        echo "WARNING: interface $nic does not exist.. try tro create"
+    # Check nic is not configured by agent
+    if ! wait_nic vhost0 1 ; then
+        echo "INFO: interface vhost0 does not exist.. try tro create"
         # vhost0 is not present, so create vhost0 and $dev
         echo "INFO: Creating ${phys_int} interface with mac $phys_int_mac via vif utility..."
         if ! vif --add 0 --mac ${phys_int_mac} --vrf 0 --vhost-phys --type physical --pmd --id 0 ; then
             echo "ERROR: Failed to adding ${phys_int} interface"
-            exit -1
+            return 1
         fi
-        echo "INFO: Adding ${nic} interface with vif utility..."
+        echo "INFO: Adding vhost0 interface with vif utility..."
         # TODO: vif --xconnect seems does not work without --id parameter?
-        if ! vif --add ${nic} --mac ${phys_int_mac} --vrf 0 --type vhost --xconnect 0 --pmd --id 1 ; then
-            echo "ERROR: Failed to add ${nic} interface"
-            exit -1
+        if ! vif --add vhost0 --mac ${phys_int_mac} --vrf 0 --type vhost --xconnect 0 --pmd --id 1 ; then
+            echo "ERROR: Failed to add vhost0 interface"
+            return 1
         fi
     fi
-
-    ip link set dev $nic address $phys_int_mac
-    ip link set dev $nic up
-    ip address add $vrouter_cidr dev $nic
-    if [[ -n "$gateway" ]] ; then
-        ip route add default via $gateway dev $nic
+    if ! ip link set dev vhost0 address $phys_int_mac ; then
+        echo "ERROR: Failed to set vhost0 address $phys_int_mac"
+        return 1
+    fi
+    if ! ip link set dev vhost0 up ; then
+        echo "ERROR: Failed to up vhost0 interface"
+        return 1
     fi
 }
 
 function save_pci_info() {
-    local pci_address=$1
+    local nic=$1
+    local pci_address=$2
     local binding_data_dir='/var/run/vrouter'
     mkdir -p ${binding_data_dir}
     local binding_data_file="${binding_data_dir}/${pci_address}"
@@ -297,7 +353,7 @@ function save_pci_info() {
     fi
 }
 
-function bind_dev_to_driver() {
+function bind_devs_to_driver() {
     local driver=$1
     shift 1
     local nics=( $@ )
@@ -307,7 +363,7 @@ function bind_dev_to_driver() {
     for n in ${nics[@]} ; do
         echo "INFO: Binding device $n to driver $driver ..."
         local pci_address=`get_pci_address_for_nic $n`
-        save_pci_info $pci_address
+        save_pci_info $n $pci_address
         if ! /opt/contrail/bin/dpdk_nic_bind.py --force --bind="$driver" $n ; then
             echo "ERROR: Failed to bind $n to driver $driver"
             exit -1
@@ -320,6 +376,7 @@ function bind_dev_to_driver() {
 }
 
 function restore_bindinds() {
+    # TODO: most probably remove this function since it is not used
     local binding_data_dir='/var/run/vrouter'
     if [[ ! -d "$binding_data_dir" ]] ; then
         ehoc "INFO: there is no local data with devs bound to dpdk uio"
@@ -346,4 +403,54 @@ function restore_bindinds() {
         ip link set dev $nic down || echo "INFO: $nic is already down"
         ip link set dev $nic up || echo "WARNING: failed to up interface $nic"
     done
-}
\ No newline at end of file
+}
+
+function ensure_hugepages() {
+    local hp_dir=${1:?}
+    if [[ ! -d "$hp_dir" ]] ; then
+        echo "WARNING: There is no $hp_dir mounted from host. Try to create and mount hugetlbfs."
+        if ! mkdir -p $hp_dir ; then
+            echo "ERROR: failed to create $hp_dir"
+            exit -1
+        fi
+        if ! mount -t hugetlbfs hugetlbfs $hp_dir ; then
+            echo "ERROR: failed to mount hugetlbfs to $hp_dir"
+            exit -1
+        fi
+    fi
+
+    if [[ ! -d "$hp_dir" ]]  ; then
+        echo "ERROR: There is no $hp_dir. Probably HugeTables are anuvailable on the host."
+        exit -1
+    fi
+}
+
+function set_ctl() {
+    local var=$1
+    local value=$2
+    if grep -q "^$var" /etc/sysctl.conf ; then
+        sed -i "s/^$var.*=.*/$var=$value/g"  /etc/sysctl.conf
+    else
+        echo "$var=$value" >> /etc/sysctl.conf
+    fi
+    sysctl -w ${var}=${value}
+}
+
+function load_kernel_module() {
+    local module=$1
+    shift 1
+    local opts=$@
+    echo "INFO: load $module kernel module"
+    if ! modprobe -v "$module" $opts ; then
+        echo "ERROR: failed to load $module driver"
+        exit -1
+    fi
+}
+
+function unload_kernel_module() {
+    local module=$1
+    echo "INFO: unload $module kernel module"
+    if ! rmmod $module ; then
+        echo "WARNING: Failed to unload $module driver"
+    fi
+}
diff --git a/docker-compose/docker-compose-dpdk.yaml b/docker-compose/docker-compose-dpdk.yaml
index 25e97aba5..db64ad698 100644
--- a/docker-compose/docker-compose-dpdk.yaml
+++ b/docker-compose/docker-compose-dpdk.yaml
@@ -318,10 +318,11 @@ services:
       - /dev:/dev
       - /lib/modules:/lib/modules
       - /var/log/contrail:/var/log/contrail
-  vrouter-agent:
-    image: "${CONTRAIL_REGISTRY}/contrail-agent-vrouter:${CONTRAIL_CONTAINER_TAG}"
+  vrouter-agent-dpdk:
+    image: "${CONTRAIL_REGISTRY}/contrail-agent-vrouter-dpdk:${CONTRAIL_CONTAINER_TAG}"
     env_file: ${ENV_FILE}
     network_mode: host
+    pid: host
     privileged: true
     volumes:
       - /dev:/dev
@@ -331,18 +332,30 @@ services:
       restart: on-failure
     depends_on:
       - vrouter-init-kernel
-  vrouter-agent-dpdk:
-    image: "${CONTRAIL_REGISTRY}/contrail-agent-vrouter-dpdk:${CONTRAIL_CONTAINER_TAG}"
+  vrouter-agent-net-watchdog:
+    image: "${CONTRAIL_REGISTRY}/contrail-agent-net-watchdog:${CONTRAIL_CONTAINER_TAG}"
     env_file: ${ENV_FILE}
     network_mode: host
-    pid: host
     privileged: true
     volumes:
       - /dev:/dev
+      - /etc/sysconfig/network-scripts:/etc/sysconfig/network-scripts
       - /lib/modules:/lib/modules
       - /var/run:/var/run
       - /var/log/contrail:/var/log/contrail
       restart: on-failure
     depends_on:
-      - vrouter-init-kernel
-      - vrouter-agent
+      - vrouter-agent-dpdk
+  vrouter-agent:
+    image: "${CONTRAIL_REGISTRY}/contrail-agent-vrouter:${CONTRAIL_CONTAINER_TAG}"
+    env_file: ${ENV_FILE}
+    network_mode: host
+    privileged: true
+    volumes:
+      - /dev:/dev
+      - /lib/modules:/lib/modules
+      - /var/run:/var/run
+      - /var/log/contrail:/var/log/contrail
+      restart: on-failure
+    depends_on:
+      - vrouter-agent-net-watchdog
diff --git a/kubernetes/manifests/contrail-template-dpdk.yaml b/kubernetes/manifests/contrail-template-dpdk.yaml
index 100914924..cc80259c8 100644
--- a/kubernetes/manifests/contrail-template-dpdk.yaml
+++ b/kubernetes/manifests/contrail-template-dpdk.yaml
@@ -807,7 +807,38 @@ spec:
         - mountPath: /var/log/contrail
           name: agent-logs
       containers:
-      - name: contrail-agent
+      - name: contrail-agent-dpdk
+        image: "{{CONTRAIL_REGISTRY}}/contrail-agent-vrouter-dpdk:{{CONTRAIL_CONTAINER_TAG}}"
+        imagePullPolicy: ""
+        # TODO: Priveleged mode is requied because w/o it the device /dev/net/tun
+        # is not present in the container. The mounting it into container
+        # doesnt help because of permissions are not enough syscalls,
+        # e.g. https://github.com/Juniper/contrail-controller/blob/master/src/vnsw/agent/contrail/linux/pkt0_interface.cc: 48.
+        securityContext:
+          privileged: true
+        envFrom:
+        - configMapRef:
+            name: env
+        volumeMounts:
+        # TODO: need for hugepages & communication with agent
+        - mountPath: /dev
+          name: dev
+        # TODO: it is for lspci -vmmks <id>  works, since it uses libkmod
+        - mountPath: /lib/modules
+          name: lib-modules
+        # TODO: looks like a shared storage for agent and dpdk agent
+        # there are sockets and pci dev info
+        - mountPath: /var/run
+          name: var-run
+        - mountPath: /var/log/contrail
+          name: agent-logs
+        - mountPath: /var/lib/contrail
+          name: var-lib-contrail
+        - mountPath: /var/crashes
+          name: var-crashes
+        - mountPath: /tmp/serviceaccount
+          name: pod-secret
+      - name: contrail-agent-net-watchdog
         image: "{{CONTRAIL_REGISTRY}}/contrail-agent-vrouter:{{CONTRAIL_CONTAINER_TAG}}"
         imagePullPolicy: ""
         # TODO: Priveleged mode is requied because w/o it the device /dev/net/tun
@@ -820,7 +851,8 @@ spec:
         - configMapRef:
             name: env
         volumeMounts:
-        # TODO: need for hugepages & communication with dpdk agent
+        - mountPath: /etc/sysconfig/network-scripts
+          name: etc-net-scripts
         - mountPath: /dev
           name: dev
         - mountPath: /lib/modules
@@ -829,8 +861,6 @@ spec:
         # there are sockets and pci dev info
         - mountPath: /var/run
           name: var-run
-        - mountPath: /usr/src
-          name: usr-src
         - mountPath: /var/log/contrail
           name: agent-logs
         - mountPath: /var/lib/contrail
@@ -839,8 +869,8 @@ spec:
           name: var-crashes
         - mountPath: /tmp/serviceaccount
           name: pod-secret
-      - name: contrail-agent-dpdk
-        image: "{{CONTRAIL_REGISTRY}}/contrail-agent-vrouter-dpdk:{{CONTRAIL_CONTAINER_TAG}}"
+      - name: contrail-agent
+        image: "{{CONTRAIL_REGISTRY}}/contrail-agent-vrouter:{{CONTRAIL_CONTAINER_TAG}}"
         imagePullPolicy: ""
         # TODO: Priveleged mode is requied because w/o it the device /dev/net/tun
         # is not present in the container. The mounting it into container
@@ -852,16 +882,17 @@ spec:
         - configMapRef:
             name: env
         volumeMounts:
-        # TODO: need for hugepages & communication with agent
+        # TODO: need for hugepages & communication with dpdk agent
         - mountPath: /dev
           name: dev
-        # TODO: it is for lspci -vmmks <id>  works, since it uses libkmod
         - mountPath: /lib/modules
           name: lib-modules
         # TODO: looks like a shared storage for agent and dpdk agent
         # there are sockets and pci dev info
         - mountPath: /var/run
           name: var-run
+        - mountPath: /usr/src
+          name: usr-src
         - mountPath: /var/log/contrail
           name: agent-logs
         - mountPath: /var/lib/contrail
@@ -893,6 +924,9 @@ spec:
       - name: etc
         hostPath:
           path: /etc
+      - name: etc-net-scripts
+        hostPath:
+          path: /etc/sysconfig/network-scripts
       - name: var-run
         hostPath:
           path: /var/run