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If the length of a packet by attaching GRE-IP header results in bigger size than router MTU, what happen on More Fragment Flag and Frag Offset field of that packet?

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Often, IP packets will need to be fragmented before encapsulation by GRE. The tunnel interface will have a smaller MTU than the physical router interface (physical interface MTU - GRE packet overhead). The tunnel interface is treated as a real interface, and the IP packets entering the tunnel will need to be fragmented before GRE encapsulation.

See RFC 7588, A Widely Deployed Solution to the Generic Routing Encapsulation (GRE) Fragmentation Problem:

2.2. A Widely Deployed Solution

Many vendors have implemented a configurable GRE fragmentation solution. In its default configuration, the solution behaves as follows:

  • When the GRE ingress node receives a fragmentable packet with length greater than the GMTU, it fragments the incoming packet and encapsulates each fragment within a complete GRE header and GRE delivery header. Fragmentation logic is as specified by the payload protocol.
  • When the GRE ingress node receives a non-fragmentable packet with length greater than the GMTU, it discards the packet and sends an ICMP PTB message to the packet's source.
  • When the GRE egress node receives a GRE delivery packet fragment, it silently discards the fragment without attempting to reassemble the GRE delivery packet to which the fragment belongs.

In non-default configurations, the GRE ingress node can execute any of the procedures defined in RFC 4459.

The solution described above is widely deployed on the Internet in its default configuration. However, the default configuration is not always appropriate for GRE tunnels that carry IPv6.

IPv6 requires that every link in the Internet have an MTU of 1280 octets or greater. On any link that cannot convey a 1280-octet packet in one piece, link-specific fragmentation and reassembly must be provided at a layer below IPv6.

Therefore, the default configuration is appropriate for tunnels that carry IPv6 only if the network is engineered so that the GMTU is guaranteed to be 1280 bytes or greater. In all other scenarios, a non-default configuration is required.

In the non-default configuration, when the GRE ingress router receives a packet lager than the GMTU, the GRE ingress router encapsulates the entire packet in a single GRE and delivery header. It then fragments the delivery header and sends the resulting fragments to the GRE egress node, where they are reassembled.

And:

3.3.1.1. IPv4 Payloads

By default, if the payload is fragmentable, the GRE ingress node fragments the incoming packet and encapsulates each fragment within a complete GRE header and GRE delivery header. Therefore, the GRE egress node receives several complete, non-fragmented delivery packets. Each delivery packet contains a fragment of the GRE payload. The GRE egress node forwards the payload fragments to their ultimate destination where they are reassembled.

Also by default, if the payload is not fragmentable, the GRE ingress node discards the packet and sends an ICMPv4 Destination Unreachable message to the packet's source. The ICMPv4 Destination Unreachable message code equals 4 (fragmentation needed and DF set). The ICMPv4 Destination Unreachable message also contains a next-hop MTU (as specified by [RFC1191]), and the next-hop MTU is equal to the GMTU associated with the tunnel.

The GRE ingress node supports a non-default configuration option that invokes an alternative behavior. If that option is configured, the GRE ingress node fragments the delivery packet. See Section 3.3.2 for details.

RFC 791, INTERNET PROTOCOL, has a complete discussion on fragmentation, including examples:

Example 2:

In this example, we show first a moderate size internet datagram (452 data octets), then two internet fragments that might result from the fragmentation of this datagram if the maximum sized transmission allowed were 280 octets.

 0                   1                   2                   3
 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1
+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+
|Ver= 4 |IHL= 5 |Type of Service|       Total Length = 472      |
+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+
|     Identification = 111      |Flg=0|     Fragment Offset = 0 |
+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+
|   Time = 123  | Protocol = 6  |        header checksum        |
+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+
|                         source address                        |
+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+
|                      destination address                      |
+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+
|                             data                              |
+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+
|                             data                              |
\                                                               \
\                                                               \
|                             data                              |
+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+
|             data              |
+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+

                   Example Internet Datagram

                           Figure 6.

Now the first fragment that results from splitting the datagram after 256 data octets.

 0                   1                   2                   3
 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1
+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+
|Ver= 4 |IHL= 5 |Type of Service|       Total Length = 276      |
+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+
|     Identification = 111      |Flg=1|     Fragment Offset = 0 |
+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+
|   Time = 119  | Protocol = 6  |        Header Checksum        |
+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+
|                         source address                        |
+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+
|                      destination address                      |
+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+
|                             data                              |
+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+
|                             data                              |
\                                                               \
\                                                               \
|                             data                              |
+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+
|                             data                              |
+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+

                   Example Internet Fragment

                           Figure 7.

And the second fragment.

 0                   1                   2                   3
 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1
+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+
|Ver= 4 |IHL= 5 |Type of Service|       Total Length = 216      |
+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+
|     Identification = 111      |Flg=0|  Fragment Offset  =  32 |
+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+
|   Time = 119  | Protocol = 6  |        Header Checksum        |
+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+
|                         source address                        |
+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+
|                      destination address                      |
+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+
|                             data                              |
+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+
|                             data                              |
\                                                               \
\                                                               \
|                             data                              |
+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+
|            data               |
+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+

                   Example Internet Fragment

                           Figure 8.

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