diff --git a/drivers/net/ethernet/mellanox/mlx5/core/ipoib/ipoib.c b/drivers/net/ethernet/mellanox/mlx5/core/ipoib/ipoib.c
index 7c5c500fd215e11b68f32e188ca990797b6f3f69..2c73c8445e630de1b5d2bf963f664cdfbdcdbd65 100644
--- a/drivers/net/ethernet/mellanox/mlx5/core/ipoib/ipoib.c
+++ b/drivers/net/ethernet/mellanox/mlx5/core/ipoib/ipoib.c
@@ -71,6 +71,10 @@ static void mlx5i_build_nic_params(struct mlx5_core_dev *mdev,
 	params->packet_merge.type = MLX5E_PACKET_MERGE_NONE;
 	params->hard_mtu = MLX5_IB_GRH_BYTES + MLX5_IPOIB_HARD_LEN;
 	params->tunneled_offload_en = false;
+
+	/* CQE compression is not supported for IPoIB */
+	params->rx_cqe_compress_def = false;
+	MLX5E_SET_PFLAG(params, MLX5E_PFLAG_RX_CQE_COMPRESS, params->rx_cqe_compress_def);
 }
 
 /* Called directly after IPoIB netdevice was created to initialize SW structs */