diff --git a/drivers/net/vmxnet3/vmxnet3_defs.h b/drivers/net/vmxnet3/vmxnet3_defs.h
index cb9dc72f2b3d..41d6767283a6 100644
--- a/drivers/net/vmxnet3/vmxnet3_defs.h
+++ b/drivers/net/vmxnet3/vmxnet3_defs.h
@@ -148,17 +148,17 @@ struct Vmxnet3_TxDesc {
 
 #ifdef __BIG_ENDIAN_BITFIELD
 	u32 msscof:14;  /* MSS, checksum offset, flags */
-	u32 ext1:1;
+	u32 ext1:1;     /* set to 1 to indicate inner csum/tso, vmxnet3 v7 */
 	u32 dtype:1;    /* descriptor type */
-	u32 oco:1;
+	u32 oco:1;      /* Outer csum offload */
 	u32 gen:1;      /* generation bit */
 	u32 len:14;
 #else
 	u32 len:14;
 	u32 gen:1;      /* generation bit */
-	u32 oco:1;
+	u32 oco:1;      /* Outer csum offload */
 	u32 dtype:1;    /* descriptor type */
-	u32 ext1:1;
+	u32 ext1:1;     /* set to 1 to indicate inner csum/tso, vmxnet3 v7 */
 	u32 msscof:14;  /* MSS, checksum offset, flags */
 #endif  /* __BIG_ENDIAN_BITFIELD */
 
@@ -262,11 +262,13 @@ struct Vmxnet3_RxCompDesc {
 	u32		rqID:10;      /* rx queue/ring ID */
 	u32		sop:1;        /* Start of Packet */
 	u32		eop:1;        /* End of Packet */
-	u32		ext1:2;
+	u32		ext1:2;       /* bit 0: indicating v4/v6/.. is for inner header */
+				      /* bit 1: indicating rssType is based on inner header */
 	u32		rxdIdx:12;    /* Index of the RxDesc */
 #else
 	u32		rxdIdx:12;    /* Index of the RxDesc */
-	u32		ext1:2;
+	u32		ext1:2;       /* bit 0: indicating v4/v6/.. is for inner header */
+				      /* bit 1: indicating rssType is based on inner header */
 	u32		eop:1;        /* End of Packet */
 	u32		sop:1;        /* Start of Packet */
 	u32		rqID:10;      /* rx queue/ring ID */
diff --git a/drivers/net/vmxnet3/vmxnet3_drv.c b/drivers/net/vmxnet3/vmxnet3_drv.c
index 2ee3a2e39f10..5c42b4a008e8 100644
--- a/drivers/net/vmxnet3/vmxnet3_drv.c
+++ b/drivers/net/vmxnet3/vmxnet3_drv.c
@@ -1161,7 +1161,12 @@ vmxnet3_tq_xmit(struct sk_buff *skb, struct vmxnet3_tx_queue *tq,
 	if (ctx.mss) {
 		if (VMXNET3_VERSION_GE_4(adapter) && skb->encapsulation) {
 			gdesc->txd.hlen = ctx.l4_offset + ctx.l4_hdr_size;
-			gdesc->txd.om = VMXNET3_OM_ENCAP;
+			if (VMXNET3_VERSION_GE_7(adapter)) {
+				gdesc->txd.om = VMXNET3_OM_TSO;
+				gdesc->txd.ext1 = 1;
+			} else {
+				gdesc->txd.om = VMXNET3_OM_ENCAP;
+			}
 			gdesc->txd.msscof = ctx.mss;
 
 			if (skb_shinfo(skb)->gso_type & SKB_GSO_UDP_TUNNEL_CSUM)
@@ -1178,8 +1183,15 @@ vmxnet3_tq_xmit(struct sk_buff *skb, struct vmxnet3_tx_queue *tq,
 			    skb->encapsulation) {
 				gdesc->txd.hlen = ctx.l4_offset +
 						  ctx.l4_hdr_size;
-				gdesc->txd.om = VMXNET3_OM_ENCAP;
-				gdesc->txd.msscof = 0;		/* Reserved */
+				if (VMXNET3_VERSION_GE_7(adapter)) {
+					gdesc->txd.om = VMXNET3_OM_CSUM;
+					gdesc->txd.msscof = ctx.l4_offset +
+							    skb->csum_offset;
+					gdesc->txd.ext1 = 1;
+				} else {
+					gdesc->txd.om = VMXNET3_OM_ENCAP;
+					gdesc->txd.msscof = 0;		/* Reserved */
+				}
 			} else {
 				gdesc->txd.hlen = ctx.l4_offset;
 				gdesc->txd.om = VMXNET3_OM_CSUM;