diff --git a/zebra/interface.c b/zebra/interface.c
index 00c8781248f8..0b7cfc371355 100644
--- a/zebra/interface.c
+++ b/zebra/interface.c
@@ -5380,6 +5380,23 @@ int ipv6_address_configured(struct interface *ifp)
 	return 0;
 }
 
+void mpls_interface_update(struct interface *ifp, uint8_t mpls)
+{
+	struct zebra_if *zif;
+
+	if (!ifp)
+		return;
+	zif = ifp->info;
+	if (zif->mpls_config != IF_ZEBRA_DATA_AUTO)
+		return;
+	if (zif->mpls && mpls == IF_ZEBRA_DATA_ON)
+		return;
+	if (!zif->mpls && mpls == IF_ZEBRA_DATA_OFF)
+		return;
+	zif->mpls_dynamic = mpls;
+	dplane_intf_mpls_modify_state(ifp, mpls);
+}
+
 static int ipv6_address_uninstall(struct vty *vty, struct interface *ifp,
 				  const char *addr_str, const char *peer_str,
 				  const char *label)
diff --git a/zebra/interface.h b/zebra/interface.h
index f0a0ac990b2d..deb14667823c 100644
--- a/zebra/interface.h
+++ b/zebra/interface.h
@@ -117,6 +117,9 @@ struct zebra_if {
 	/* MPLS configuration */
 	uint8_t mpls_config;
 
+	/* MPLS dynamic configuration - when mpls_config is auto */
+	uint8_t mpls_dynamic;
+
 	/* Linkdown status */
 	bool linkdown, linkdownv6;
 
@@ -334,6 +337,7 @@ extern void zebra_l2_map_slave_to_bond(struct zebra_if *zif, vrf_id_t vrf);
 extern void zebra_l2_unmap_slave_from_bond(struct zebra_if *zif);
 extern const char *zebra_protodown_rc_str(uint32_t protodown_rc, char *pd_buf,
 					  uint32_t pd_buf_len);
+extern void mpls_interface_update(struct interface *ifp, uint8_t mpls);
 void zebra_if_dplane_result(struct zebra_dplane_ctx *ctx);
 extern void if_mpls_set_default(struct zebra_if *zif);
 
diff --git a/zebra/zapi_msg.c b/zebra/zapi_msg.c
index 761eafeb1375..2383f6aa8cdf 100644
--- a/zebra/zapi_msg.c
+++ b/zebra/zapi_msg.c
@@ -1755,6 +1755,7 @@ static bool zapi_read_nexthops(struct zserv *client, struct prefix *p,
 		char nhbuf[NEXTHOP_STRLEN];
 		char labelbuf[MPLS_LABEL_STRLEN];
 		struct zapi_nexthop *api_nh = &nhops[i];
+		struct interface *ifp;
 
 		/* Convert zapi nexthop */
 		nexthop = nexthop_from_zapi(api_nh, flags, p, backup_nh_num);
@@ -1791,7 +1792,9 @@ static bool zapi_read_nexthops(struct zserv *client, struct prefix *p,
 		    && api_nh->type != NEXTHOP_TYPE_IFINDEX
 		    && api_nh->type != NEXTHOP_TYPE_BLACKHOLE
 		    && api_nh->label_num > 0) {
-
+			ifp = if_lookup_by_index(nexthop->ifindex,
+						 nexthop->vrf_id);
+			mpls_interface_update(ifp, IF_ZEBRA_DATA_ON);
 			/* If label type was passed, use it */
 			if (api_nh->label_type)
 				label_type = api_nh->label_type;
@@ -3182,16 +3185,19 @@ static void zread_vrf_label(ZAPI_HANDLER_ARGS)
 			}
 		}
 
-		if (really_remove)
+		if (really_remove) {
 			mpls_lsp_uninstall(def_zvrf, ltype, zvrf->label[afi],
 					   NEXTHOP_TYPE_IFINDEX, NULL,
 					   ifp->ifindex, false /*backup*/);
+			mpls_interface_update(ifp, IF_ZEBRA_DATA_OFF);
+		}
 	}
 
 	if (nlabel != MPLS_LABEL_NONE) {
 		mpls_label_t out_label = MPLS_LABEL_IMPLICIT_NULL;
 		mpls_lsp_install(def_zvrf, ltype, nlabel, 1, &out_label,
 				 NEXTHOP_TYPE_IFINDEX, NULL, ifp->ifindex);
+		mpls_interface_update(ifp, IF_ZEBRA_DATA_ON);
 	}
 
 	zvrf->label[afi] = nlabel;
diff --git a/zebra/zebra_mpls.c b/zebra/zebra_mpls.c
index 15e36acda8c3..a08c0de974a4 100644
--- a/zebra/zebra_mpls.c
+++ b/zebra/zebra_mpls.c
@@ -3111,6 +3111,11 @@ lsp_add_nhlfe(struct zebra_lsp *lsp, enum lsp_types_t type,
 		if (!nhlfe)
 			return NULL;
 
+		if (num_out_labels)
+			mpls_interface_update(if_lookup_by_index(ifindex,
+								 vrf_id),
+					      IF_ZEBRA_DATA_ON);
+
 		if (IS_ZEBRA_DEBUG_MPLS) {
 			char buf2[MPLS_LABEL_STRLEN];
 
diff --git a/zebra/zebra_nhg.c b/zebra/zebra_nhg.c
index 93758cca2017..e5ce05b05847 100644
--- a/zebra/zebra_nhg.c
+++ b/zebra/zebra_nhg.c
@@ -2385,6 +2385,14 @@ static int nexthop_active(struct nexthop *nexthop, struct nhg_hash_entry *nhe,
 		 * tree.
 		 */
 
+		if (match && match->nhe->nhg.nexthop &&
+		    match->nhe->nhg.nexthop->ifindex != IFINDEX_INTERNAL &&
+		    nexthop->type != NEXTHOP_TYPE_BLACKHOLE &&
+		    nexthop->nh_label && nexthop->nh_label->num_labels) {
+			ifp = if_lookup_by_index(match->nhe->nhg.nexthop->ifindex,
+						 nexthop->vrf_id);
+			mpls_interface_update(ifp, IF_ZEBRA_DATA_ON);
+		}
 		/* If the candidate match's type is considered "connected",
 		 * we consider it first.
 		 */