df = tiph->frag_off;
        if (df)
-               mtu = dst_mtu(&rt->u.dst) - tunnel->hlen;
+               mtu = dst_mtu(&rt->u.dst) - dev->hard_header_len - tunnel->hlen;
        else
                mtu = skb->dst ? dst_mtu(skb->dst) : dev->mtu;
 
        tunnel = netdev_priv(dev);
        iph = &tunnel->parms.iph;
 
-       /* Guess output device to choose reasonable mtu and hard_header_len */
+       /* Guess output device to choose reasonable mtu and needed_headroom */
 
        if (iph->daddr) {
                struct flowi fl = { .oif = tunnel->parms.link,
                tdev = __dev_get_by_index(dev_net(dev), tunnel->parms.link);
 
        if (tdev) {
-               hlen = tdev->hard_header_len;
+               hlen = tdev->hard_header_len + tdev->needed_headroom;
                mtu = tdev->mtu;
        }
        dev->iflink = tunnel->parms.link;
                if (tunnel->parms.o_flags&GRE_SEQ)
                        addend += 4;
        }
-       dev->hard_header_len = hlen + addend;
-       dev->mtu = mtu - addend;
+       dev->needed_headroom = addend + hlen;
+       dev->mtu = mtu - dev->hard_header_len - addend;
        tunnel->hlen = addend;
 
 }
 static int ipgre_tunnel_change_mtu(struct net_device *dev, int new_mtu)
 {
        struct ip_tunnel *tunnel = netdev_priv(dev);
-       if (new_mtu < 68 || new_mtu > 0xFFF8 - tunnel->hlen)
+       if (new_mtu < 68 ||
+           new_mtu > 0xFFF8 - dev->hard_header_len - tunnel->hlen)
                return -EINVAL;
        dev->mtu = new_mtu;
        return 0;
        dev->change_mtu         = ipgre_tunnel_change_mtu;
 
        dev->type               = ARPHRD_IPGRE;
-       dev->hard_header_len    = LL_MAX_HEADER + sizeof(struct iphdr) + 4;
+       dev->needed_headroom    = LL_MAX_HEADER + sizeof(struct iphdr) + 4;
        dev->mtu                = ETH_DATA_LEN - sizeof(struct iphdr) - 4;
        dev->flags              = IFF_NOARP;
        dev->iflink             = 0;