This tutorial show you how to create vxlan Network with L2 Connectivity between VMs (Compute Engine) in google cloud Create VPC Network named vxlan-network with custom mode bash gcloud compute networks create vxlan-network \ --project=trial-project-andania \ --subnet-mode=custom Create Subnet on vxlan-network VPC Network bash gcloud compute networks subnets create us-central1-subnet \ --project=trial-project-andania \ --range=10.40.0.0/20 \ --network=vxlan-network \ --region=us-central1 Create firewall rules to allow SSH and icmp for the VMs bash gcloud compute firewall-rules create vxlan-network-allow-ssh-icmp \ --project=trial-project-andania \ --network vxlan-network \ --allow tcp:22,icmp Create two VM instances named vm-a and vm-b.