diff --git a/drivers/net/ethernet/mellanox/mlx5/core/en/rep/neigh.c b/drivers/net/ethernet/mellanox/mlx5/core/en/rep/neigh.c
index 58e27038c947b..bbc182e9e5356 100644
--- a/drivers/net/ethernet/mellanox/mlx5/core/en/rep/neigh.c
+++ b/drivers/net/ethernet/mellanox/mlx5/core/en/rep/neigh.c
@@ -129,9 +129,8 @@ static void mlx5e_rep_neigh_update(struct work_struct *work)
 							     work);
 	struct mlx5e_neigh_hash_entry *nhe = update_work->nhe;
 	struct neighbour *n = update_work->n;
-	struct mlx5e_encap_entry *e;
+	struct mlx5e_encap_entry *e = NULL;
 	unsigned char ha[ETH_ALEN];
-	struct mlx5e_priv *priv;
 	bool neigh_connected;
 	u8 nud_state, dead;
 
@@ -152,14 +151,12 @@ static void mlx5e_rep_neigh_update(struct work_struct *work)
 
 	trace_mlx5e_rep_neigh_update(nhe, ha, neigh_connected);
 
-	list_for_each_entry(e, &nhe->encap_list, encap_list) {
-		if (!mlx5e_encap_take(e))
-			continue;
+	/* mlx5e_get_next_init_encap() releases previous encap before returning
+	 * the next one.
+	 */
+	while ((e = mlx5e_get_next_init_encap(nhe, e)) != NULL)
+		mlx5e_rep_update_flows(netdev_priv(e->out_dev), e, neigh_connected, ha);
 
-		priv = netdev_priv(e->out_dev);
-		mlx5e_rep_update_flows(priv, e, neigh_connected, ha);
-		mlx5e_encap_put(priv, e);
-	}
 	rtnl_unlock();
 	mlx5e_release_neigh_update_work(update_work);
 }
diff --git a/drivers/net/ethernet/mellanox/mlx5/core/en/rep/tc.c b/drivers/net/ethernet/mellanox/mlx5/core/en/rep/tc.c
index 2fdea05eec1de..552c07e526823 100644
--- a/drivers/net/ethernet/mellanox/mlx5/core/en/rep/tc.c
+++ b/drivers/net/ethernet/mellanox/mlx5/core/en/rep/tc.c
@@ -91,13 +91,9 @@ void mlx5e_rep_update_flows(struct mlx5e_priv *priv,
 
 	ASSERT_RTNL();
 
-	/* wait for encap to be fully initialized */
-	wait_for_completion(&e->res_ready);
-
 	mutex_lock(&esw->offloads.encap_tbl_lock);
 	encap_connected = !!(e->flags & MLX5_ENCAP_ENTRY_VALID);
-	if (e->compl_result < 0 || (encap_connected == neigh_connected &&
-				    ether_addr_equal(e->h_dest, ha)))
+	if (encap_connected == neigh_connected && ether_addr_equal(e->h_dest, ha))
 		goto unlock;
 
 	mlx5e_take_all_encap_flows(e, &flow_list);
diff --git a/drivers/net/ethernet/mellanox/mlx5/core/en_tc.c b/drivers/net/ethernet/mellanox/mlx5/core/en_tc.c
index c6a81a51530d2..6b4e028de9bf8 100644
--- a/drivers/net/ethernet/mellanox/mlx5/core/en_tc.c
+++ b/drivers/net/ethernet/mellanox/mlx5/core/en_tc.c
@@ -1653,9 +1653,12 @@ void mlx5e_put_encap_flow_list(struct mlx5e_priv *priv, struct list_head *flow_l
 		mlx5e_flow_put(priv, flow);
 }
 
+typedef bool (match_cb)(struct mlx5e_encap_entry *);
+
 static struct mlx5e_encap_entry *
-mlx5e_get_next_valid_encap(struct mlx5e_neigh_hash_entry *nhe,
-			   struct mlx5e_encap_entry *e)
+mlx5e_get_next_matching_encap(struct mlx5e_neigh_hash_entry *nhe,
+			   struct mlx5e_encap_entry *e,
+			   match_cb match)
 {
 	struct mlx5e_encap_entry *next = NULL;
 
@@ -1690,7 +1693,7 @@ mlx5e_get_next_valid_encap(struct mlx5e_neigh_hash_entry *nhe,
 	/* wait for encap to be fully initialized */
 	wait_for_completion(&next->res_ready);
 	/* continue searching if encap entry is not in valid state after completion */
-	if (!(next->flags & MLX5_ENCAP_ENTRY_VALID)) {
+	if (!match(next)) {
 		e = next;
 		goto retry;
 	}
@@ -1698,6 +1701,30 @@ mlx5e_get_next_valid_encap(struct mlx5e_neigh_hash_entry *nhe,
 	return next;
 }
 
+static bool mlx5e_encap_valid(struct mlx5e_encap_entry *e)
+{
+	return e->flags & MLX5_ENCAP_ENTRY_VALID;
+}
+
+static struct mlx5e_encap_entry *
+mlx5e_get_next_valid_encap(struct mlx5e_neigh_hash_entry *nhe,
+			   struct mlx5e_encap_entry *e)
+{
+	return mlx5e_get_next_matching_encap(nhe, e, mlx5e_encap_valid);
+}
+
+static bool mlx5e_encap_initialized(struct mlx5e_encap_entry *e)
+{
+	return e->compl_result >= 0;
+}
+
+struct mlx5e_encap_entry *
+mlx5e_get_next_init_encap(struct mlx5e_neigh_hash_entry *nhe,
+			  struct mlx5e_encap_entry *e)
+{
+	return mlx5e_get_next_matching_encap(nhe, e, mlx5e_encap_initialized);
+}
+
 void mlx5e_tc_update_neigh_used_value(struct mlx5e_neigh_hash_entry *nhe)
 {
 	struct mlx5e_neigh *m_neigh = &nhe->m_neigh;
diff --git a/drivers/net/ethernet/mellanox/mlx5/core/en_tc.h b/drivers/net/ethernet/mellanox/mlx5/core/en_tc.h
index 4a2ce241522e3..e7e5f0c080fb8 100644
--- a/drivers/net/ethernet/mellanox/mlx5/core/en_tc.h
+++ b/drivers/net/ethernet/mellanox/mlx5/core/en_tc.h
@@ -161,6 +161,9 @@ void mlx5e_take_all_encap_flows(struct mlx5e_encap_entry *e, struct list_head *f
 void mlx5e_put_encap_flow_list(struct mlx5e_priv *priv, struct list_head *flow_list);
 
 struct mlx5e_neigh_hash_entry;
+struct mlx5e_encap_entry *
+mlx5e_get_next_init_encap(struct mlx5e_neigh_hash_entry *nhe,
+			  struct mlx5e_encap_entry *e);
 void mlx5e_tc_update_neigh_used_value(struct mlx5e_neigh_hash_entry *nhe);
 
 void mlx5e_tc_reoffload_flows_work(struct work_struct *work);