diff --git a/drivers/net/loopback.c b/drivers/net/loopback.c
index ea0dc451da9c874716c689a051cb967082c8bf6b..d70fb76edb7717062544a3c87d27e5799d0348c9 100644
--- a/drivers/net/loopback.c
+++ b/drivers/net/loopback.c
@@ -173,7 +173,8 @@ static void loopback_setup(struct net_device *dev)
 		| NETIF_F_RXCSUM
 		| NETIF_F_HIGHDMA
 		| NETIF_F_LLTX
-		| NETIF_F_NETNS_LOCAL;
+		| NETIF_F_NETNS_LOCAL
+		| NETIF_F_VLAN_CHALLENGED;
 	dev->ethtool_ops	= &loopback_ethtool_ops;
 	dev->header_ops		= &eth_header_ops;
 	dev->netdev_ops		= &loopback_ops;