In a VMware NSX environment, the BFD (Bidirectional Forwarding Detection) session between an NSX Edge node and transport node host does not establish and remains in a Down state
You may observe:
BFD status continuously shows Down
Repeated BFD INIT packets
No tunnel establishment
TEP connectivity appears reachable at the host uplink level
Edge VM does not receive BFD packets
No apparent physical network drop
Packet capture analysis shows:
Host sends BFD INIT packets (UDP source port 3784) toward Edge
Traffic successfully reaches the destination host uplink
Packets do not reach the Edge VM interface
Edge sends return packets host (source)
Return packets reach the destination host
BFD session never establishes and continuously retries INIT
VMware NSX
The issue occurs when the communicating TEP endpoints reside in the same IP network/subnet.
In this scenario, packets are received at the destination host uplink but are dropped at the NSX Distributed Router (VDR) because MAC learning does not occur correctly for same-network routing behavior.
As a result, packets never reach the Edge VM virtual NIC
Move the affected workloads to a different non-overlapping IP range so the endpoints are no longer in the same network.
OR
If both endpoints must remain in the same VLAN:
Connect the Edge TEP interface to a VLAN segment
No further port-level connectivity testing between the hosts is required
The physical network is forwarding packets correctly
The issue is related to IP addressing and NSX logical routing behavior
Overlay tunnels cannot form while BFD remains down, which may impact:
Tier-0/Tier-1 routing
Edge connectivity
Overlay transport reliability