diff --git a/Tethering/common/TetheringLib/api/system-current.txt b/Tethering/common/TetheringLib/api/system-current.txt
index a287b42..cccafd5 100644
--- a/Tethering/common/TetheringLib/api/system-current.txt
+++ b/Tethering/common/TetheringLib/api/system-current.txt
@@ -47,6 +47,7 @@
     field public static final int TETHERING_INVALID = -1; // 0xffffffff
     field public static final int TETHERING_NCM = 4; // 0x4
     field public static final int TETHERING_USB = 1; // 0x1
+    field @FlaggedApi("com.android.net.flags.tethering_request_virtual") public static final int TETHERING_VIRTUAL = 7; // 0x7
     field public static final int TETHERING_WIFI = 0; // 0x0
     field public static final int TETHERING_WIFI_P2P = 3; // 0x3
     field public static final int TETHER_ERROR_DHCPSERVER_ERROR = 12; // 0xc
diff --git a/Tethering/common/TetheringLib/src/android/net/TetheringManager.java b/Tethering/common/TetheringLib/src/android/net/TetheringManager.java
index 7b769d4..2963f87 100644
--- a/Tethering/common/TetheringLib/src/android/net/TetheringManager.java
+++ b/Tethering/common/TetheringLib/src/android/net/TetheringManager.java
@@ -68,6 +68,8 @@
     public static class Flags {
         static final String TETHERING_REQUEST_WITH_SOFT_AP_CONFIG =
                 "com.android.net.flags.tethering_request_with_soft_ap_config";
+        static final String TETHERING_REQUEST_VIRTUAL =
+                "com.android.net.flags.tethering_request_virtual";
     }
 
     private static final String TAG = TetheringManager.class.getSimpleName();
@@ -195,10 +197,18 @@
     public static final int TETHERING_WIGIG = 6;
 
     /**
+     * VIRTUAL tethering type.
+     * @hide
+     */
+    @FlaggedApi(Flags.TETHERING_REQUEST_VIRTUAL)
+    @SystemApi
+    public static final int TETHERING_VIRTUAL = 7;
+
+    /**
      * The int value of last tethering type.
      * @hide
      */
-    public static final int MAX_TETHERING_TYPE = TETHERING_WIGIG;
+    public static final int MAX_TETHERING_TYPE = TETHERING_VIRTUAL;
 
     /** @hide */
     @Retention(RetentionPolicy.SOURCE)
diff --git a/Tethering/src/com/android/networkstack/tethering/Tethering.java b/Tethering/src/com/android/networkstack/tethering/Tethering.java
index d85d92f..29ced23 100644
--- a/Tethering/src/com/android/networkstack/tethering/Tethering.java
+++ b/Tethering/src/com/android/networkstack/tethering/Tethering.java
@@ -38,6 +38,7 @@
 import static android.net.TetheringManager.TETHERING_INVALID;
 import static android.net.TetheringManager.TETHERING_NCM;
 import static android.net.TetheringManager.TETHERING_USB;
+import static android.net.TetheringManager.TETHERING_VIRTUAL;
 import static android.net.TetheringManager.TETHERING_WIFI;
 import static android.net.TetheringManager.TETHERING_WIFI_P2P;
 import static android.net.TetheringManager.TETHERING_WIGIG;
@@ -278,6 +279,7 @@
     private TetheredInterfaceRequestShim mBluetoothIfaceRequest;
     private String mConfiguredEthernetIface;
     private String mConfiguredBluetoothIface;
+    private String mConfiguredVirtualIface;
     private EthernetCallback mEthernetCallback;
     private TetheredInterfaceCallbackShim mBluetoothCallback;
     private SettingsObserver mSettingsObserver;
@@ -719,6 +721,9 @@
             case TETHERING_ETHERNET:
                 result = setEthernetTethering(enable);
                 break;
+            case TETHERING_VIRTUAL:
+                result = setVirtualMachineTethering(enable);
+                break;
             default:
                 Log.w(TAG, "Invalid tether type.");
                 result = TETHER_ERROR_UNKNOWN_TYPE;
@@ -972,6 +977,21 @@
         }
     }
 
+    private int setVirtualMachineTethering(final boolean enable) {
+        // TODO(340377643): Use bridge ifname when it's introduced, not fixed TAP ifname.
+        if (enable) {
+            mConfiguredVirtualIface = "avf_tap_fixed";
+            enableIpServing(
+                    TETHERING_VIRTUAL,
+                    mConfiguredVirtualIface,
+                    getRequestedState(TETHERING_VIRTUAL));
+        } else if (mConfiguredVirtualIface != null) {
+            ensureIpServerStopped(mConfiguredVirtualIface);
+            mConfiguredVirtualIface = null;
+        }
+        return TETHER_ERROR_NO_ERROR;
+    }
+
     void tether(String iface, int requestedState, final IIntResultListener listener) {
         mHandler.post(() -> {
             try {
diff --git a/common/flags.aconfig b/common/flags.aconfig
index bc4168b..b320b61 100644
--- a/common/flags.aconfig
+++ b/common/flags.aconfig
@@ -115,3 +115,11 @@
   description: "Flag for NET_CAPABILITY_NOT_BANDWIDTH_CONSTRAINED API"
   bug: "343823469"
 }
+
+flag {
+  name: "tethering_request_virtual"
+  is_exported: true
+  namespace: "android_core_networking"
+  description: "Flag for introducing TETHERING_VIRTUAL type"
+  bug: "340376953"
+}