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 be0ee03de721..2e9bee4e5209 100644
--- a/drivers/net/ethernet/mellanox/mlx5/core/en/rep/neigh.c
+++ b/drivers/net/ethernet/mellanox/mlx5/core/en/rep/neigh.c
@@ -129,10 +129,9 @@ 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 = NULL;
 	bool neigh_connected, same_dev;
-	struct mlx5e_encap_entry *e;
 	unsigned char ha[ETH_ALEN];
-	struct mlx5e_priv *priv;
 	u8 nud_state, dead;
 
 	rtnl_lock();
@@ -156,14 +155,12 @@ static void mlx5e_rep_neigh_update(struct work_struct *work)
 	if (!same_dev)
 		goto out;
 
-	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);
-	}
 out:
 	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 311382261840..85eaadc989df 100644
--- a/drivers/net/ethernet/mellanox/mlx5/core/en/rep/tc.c
+++ b/drivers/net/ethernet/mellanox/mlx5/core/en/rep/tc.c
@@ -94,13 +94,9 @@ 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_tun_encap.c b/drivers/net/ethernet/mellanox/mlx5/core/en/tc_tun_encap.c
index f1fb11680d20..490131e06efb 100644
--- a/drivers/net/ethernet/mellanox/mlx5/core/en/tc_tun_encap.c
+++ b/drivers/net/ethernet/mellanox/mlx5/core/en/tc_tun_encap.c
@@ -251,9 +251,12 @@ static void mlx5e_take_all_route_decap_flows(struct mlx5e_route_entry *r,
 		mlx5e_take_tmp_flow(flow, flow_list, 0);
 }
 
+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;
 
@@ -288,7 +291,7 @@ retry:
 	/* 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;
 	}
@@ -296,6 +299,30 @@ retry:
 	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 25c091795bcd..17027536efba 100644
--- a/drivers/net/ethernet/mellanox/mlx5/core/en_tc.h
+++ b/drivers/net/ethernet/mellanox/mlx5/core/en_tc.h
@@ -178,6 +178,9 @@ void mlx5e_take_all_encap_flows(struct mlx5e_encap_entry *e, struct list_head *f
 void mlx5e_put_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);