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 5b6a79d2034e..ff73d25bc6eb 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
@@ -764,8 +764,7 @@ int mlx5e_attach_encap(struct mlx5e_priv *priv,
 		       struct net_device *mirred_dev,
 		       int out_index,
 		       struct netlink_ext_ack *extack,
-		       struct net_device **encap_dev,
-		       bool *encap_valid)
+		       struct net_device **encap_dev)
 {
 	struct mlx5_eswitch *esw = priv->mdev->priv.eswitch;
 	struct mlx5e_tc_flow_parse_attr *parse_attr;
@@ -880,9 +879,8 @@ int mlx5e_attach_encap(struct mlx5e_priv *priv,
 	if (e->flags & MLX5_ENCAP_ENTRY_VALID) {
 		attr->esw_attr->dests[out_index].pkt_reformat = e->pkt_reformat;
 		attr->esw_attr->dests[out_index].flags |= MLX5_ESW_DEST_ENCAP_VALID;
-		*encap_valid = true;
 	} else {
-		*encap_valid = false;
+		flow_flag_set(flow, SLOW);
 	}
 	mutex_unlock(&esw->offloads.encap_tbl_lock);
 
diff --git a/drivers/net/ethernet/mellanox/mlx5/core/en/tc_tun_encap.h b/drivers/net/ethernet/mellanox/mlx5/core/en/tc_tun_encap.h
index d542b8476491..8ad273dde40e 100644
--- a/drivers/net/ethernet/mellanox/mlx5/core/en/tc_tun_encap.h
+++ b/drivers/net/ethernet/mellanox/mlx5/core/en/tc_tun_encap.h
@@ -17,8 +17,7 @@ int mlx5e_attach_encap(struct mlx5e_priv *priv,
 		       struct net_device *mirred_dev,
 		       int out_index,
 		       struct netlink_ext_ack *extack,
-		       struct net_device **encap_dev,
-		       bool *encap_valid);
+		       struct net_device **encap_dev);
 
 int mlx5e_attach_decap(struct mlx5e_priv *priv,
 		       struct mlx5e_tc_flow *flow,
diff --git a/drivers/net/ethernet/mellanox/mlx5/core/en_tc.c b/drivers/net/ethernet/mellanox/mlx5/core/en_tc.c
index 229c14b1af00..949ef560df78 100644
--- a/drivers/net/ethernet/mellanox/mlx5/core/en_tc.c
+++ b/drivers/net/ethernet/mellanox/mlx5/core/en_tc.c
@@ -1620,7 +1620,6 @@ set_encap_dests(struct mlx5e_priv *priv,
 		struct mlx5e_tc_flow *flow,
 		struct mlx5_flow_attr *attr,
 		struct netlink_ext_ack *extack,
-		bool *encap_valid,
 		bool *vf_tun)
 {
 	struct mlx5e_tc_flow_parse_attr *parse_attr;
@@ -1637,7 +1636,6 @@ set_encap_dests(struct mlx5e_priv *priv,
 	parse_attr = attr->parse_attr;
 	esw_attr = attr->esw_attr;
 	*vf_tun = false;
-	*encap_valid = true;
 
 	for (out_index = 0; out_index < MLX5_MAX_FLOW_FWD_VPORTS; out_index++) {
 		struct net_device *out_dev;
@@ -1654,7 +1652,7 @@ set_encap_dests(struct mlx5e_priv *priv,
 			goto out;
 		}
 		err = mlx5e_attach_encap(priv, flow, attr, out_dev, out_index,
-					 extack, &encap_dev, encap_valid);
+					 extack, &encap_dev);
 		dev_put(out_dev);
 		if (err)
 			goto out;
@@ -1718,8 +1716,8 @@ mlx5e_tc_add_fdb_flow(struct mlx5e_priv *priv,
 	struct mlx5e_tc_flow_parse_attr *parse_attr;
 	struct mlx5_flow_attr *attr = flow->attr;
 	struct mlx5_esw_flow_attr *esw_attr;
-	bool vf_tun, encap_valid;
 	u32 max_prio, max_chain;
+	bool vf_tun;
 	int err = 0;
 
 	parse_attr = attr->parse_attr;
@@ -1809,7 +1807,7 @@ mlx5e_tc_add_fdb_flow(struct mlx5e_priv *priv,
 		esw_attr->int_port = int_port;
 	}
 
-	err = set_encap_dests(priv, flow, attr, extack, &encap_valid, &vf_tun);
+	err = set_encap_dests(priv, flow, attr, extack, &vf_tun);
 	if (err)
 		goto err_out;
 
@@ -1839,7 +1837,7 @@ mlx5e_tc_add_fdb_flow(struct mlx5e_priv *priv,
 	 * (1) there's no error
 	 * (2) there's an encap action and we don't have valid neigh
 	 */
-	if (!encap_valid || flow_flag_test(flow, SLOW))
+	if (flow_flag_test(flow, SLOW))
 		flow->rule[0] = mlx5e_tc_offload_to_slow_path(esw, flow, &parse_attr->spec);
 	else
 		flow->rule[0] = mlx5e_tc_offload_fdb_rules(esw, flow, &parse_attr->spec, attr);
@@ -3737,7 +3735,7 @@ alloc_flow_post_acts(struct mlx5e_tc_flow *flow, struct netlink_ext_ack *extack)
 	struct mlx5e_post_act *post_act = get_post_action(flow->priv);
 	struct mlx5_flow_attr *attr, *next_attr = NULL;
 	struct mlx5e_post_act_handle *handle;
-	bool vf_tun, encap_valid = true;
+	bool vf_tun;
 	int err;
 
 	/* This is going in reverse order as needed.
@@ -3759,13 +3757,10 @@ alloc_flow_post_acts(struct mlx5e_tc_flow *flow, struct netlink_ext_ack *extack)
 		if (list_is_last(&attr->list, &flow->attrs))
 			break;
 
-		err = set_encap_dests(flow->priv, flow, attr, extack, &encap_valid, &vf_tun);
+		err = set_encap_dests(flow->priv, flow, attr, extack, &vf_tun);
 		if (err)
 			goto out_free;
 
-		if (!encap_valid)
-			flow_flag_set(flow, SLOW);
-
 		err = actions_prepare_mod_hdr_actions(flow->priv, flow, attr, extack);
 		if (err)
 			goto out_free;