diff --git a/drivers/net/ethernet/mellanox/mlx5/core/en.h b/drivers/net/ethernet/mellanox/mlx5/core/en.h
index a3700c57b073..c190061763fd 100644
--- a/drivers/net/ethernet/mellanox/mlx5/core/en.h
+++ b/drivers/net/ethernet/mellanox/mlx5/core/en.h
@@ -409,14 +409,17 @@ struct mlx5e_xdp_info_fifo {
 
 struct mlx5e_xdp_wqe_info {
 	u8 num_wqebbs;
-	u8 num_ds;
+	u8 num_pkts;
 };
 
 struct mlx5e_xdp_mpwqe {
 	/* Current MPWQE session */
 	struct mlx5e_tx_wqe *wqe;
 	u8                   ds_count;
+	u8                   pkt_count;
 	u8                   max_ds_count;
+	u8                   complete;
+	u8                   inline_on;
 };
 
 struct mlx5e_xdpsq;
diff --git a/drivers/net/ethernet/mellanox/mlx5/core/en/xdp.c b/drivers/net/ethernet/mellanox/mlx5/core/en/xdp.c
index a9075b526ab9..c3d4efbf60ba 100644
--- a/drivers/net/ethernet/mellanox/mlx5/core/en/xdp.c
+++ b/drivers/net/ethernet/mellanox/mlx5/core/en/xdp.c
@@ -113,7 +113,9 @@ static void mlx5e_xdp_mpwqe_session_start(struct mlx5e_xdpsq *sq)
 	mlx5e_xdpsq_fetch_wqe(sq, &session->wqe);
 
 	prefetchw(session->wqe->data);
-	session->ds_count = MLX5E_XDP_TX_EMPTY_DS_COUNT;
+	session->ds_count  = MLX5E_XDP_TX_EMPTY_DS_COUNT;
+	session->pkt_count = 0;
+	session->complete  = 0;
 
 	pi = mlx5_wq_cyc_ctr2ix(wq, sq->pc);
 
@@ -132,6 +134,9 @@ static void mlx5e_xdp_mpwqe_session_start(struct mlx5e_xdpsq *sq)
 		       MLX5E_XDP_MPW_MAX_WQEBBS);
 
 	session->max_ds_count = MLX5_SEND_WQEBB_NUM_DS * wqebbs;
+
+	mlx5e_xdp_update_inline_state(sq);
+
 	stats->mpwqe++;
 }
 
@@ -149,7 +154,7 @@ static void mlx5e_xdp_mpwqe_complete(struct mlx5e_xdpsq *sq)
 	cseg->qpn_ds = cpu_to_be32((sq->sqn << 8) | ds_count);
 
 	wi->num_wqebbs = DIV_ROUND_UP(ds_count, MLX5_SEND_WQEBB_NUM_DS);
-	wi->num_ds     = ds_count - MLX5E_XDP_TX_EMPTY_DS_COUNT;
+	wi->num_pkts   = session->pkt_count;
 
 	sq->pc += wi->num_wqebbs;
 
@@ -164,11 +169,9 @@ static bool mlx5e_xmit_xdp_frame_mpwqe(struct mlx5e_xdpsq *sq,
 	struct mlx5e_xdp_mpwqe *session = &sq->mpwqe;
 	struct mlx5e_xdpsq_stats *stats = sq->stats;
 
-	dma_addr_t dma_addr    = xdpi->dma_addr;
 	struct xdp_frame *xdpf = xdpi->xdpf;
-	unsigned int dma_len   = xdpf->len;
 
-	if (unlikely(sq->hw_mtu < dma_len)) {
+	if (unlikely(sq->hw_mtu < xdpf->len)) {
 		stats->err++;
 		return false;
 	}
@@ -185,9 +188,10 @@ static bool mlx5e_xmit_xdp_frame_mpwqe(struct mlx5e_xdpsq *sq,
 		mlx5e_xdp_mpwqe_session_start(sq);
 	}
 
-	mlx5e_xdp_mpwqe_add_dseg(sq, dma_addr, dma_len);
+	mlx5e_xdp_mpwqe_add_dseg(sq, xdpi, stats);
 
-	if (unlikely(session->ds_count == session->max_ds_count))
+	if (unlikely(session->complete ||
+		     session->ds_count == session->max_ds_count))
 		mlx5e_xdp_mpwqe_complete(sq);
 
 	mlx5e_xdpi_fifo_push(&sq->db.xdpi_fifo, xdpi);
@@ -301,7 +305,7 @@ bool mlx5e_poll_xdpsq_cq(struct mlx5e_cq *cq, struct mlx5e_rq *rq)
 
 			sqcc += wi->num_wqebbs;
 
-			for (j = 0; j < wi->num_ds; j++) {
+			for (j = 0; j < wi->num_pkts; j++) {
 				struct mlx5e_xdp_info xdpi =
 					mlx5e_xdpi_fifo_pop(xdpi_fifo);
 
@@ -342,7 +346,7 @@ void mlx5e_free_xdpsq_descs(struct mlx5e_xdpsq *sq, struct mlx5e_rq *rq)
 
 		sq->cc += wi->num_wqebbs;
 
-		for (i = 0; i < wi->num_ds; i++) {
+		for (i = 0; i < wi->num_pkts; i++) {
 			struct mlx5e_xdp_info xdpi =
 				mlx5e_xdpi_fifo_pop(xdpi_fifo);
 
diff --git a/drivers/net/ethernet/mellanox/mlx5/core/en/xdp.h b/drivers/net/ethernet/mellanox/mlx5/core/en/xdp.h
index ee27a7c8cd87..858e7a2a13ca 100644
--- a/drivers/net/ethernet/mellanox/mlx5/core/en/xdp.h
+++ b/drivers/net/ethernet/mellanox/mlx5/core/en/xdp.h
@@ -75,16 +75,68 @@ static inline void mlx5e_xmit_xdp_doorbell(struct mlx5e_xdpsq *sq)
 	}
 }
 
+/* Enable inline WQEs to shift some load from a congested HCA (HW) to
+ * a less congested cpu (SW).
+ */
+static inline void mlx5e_xdp_update_inline_state(struct mlx5e_xdpsq *sq)
+{
+	u16 outstanding = sq->xdpi_fifo_pc - sq->xdpi_fifo_cc;
+	struct mlx5e_xdp_mpwqe *session = &sq->mpwqe;
+
+#define MLX5E_XDP_INLINE_WATERMARK_LOW	10
+#define MLX5E_XDP_INLINE_WATERMARK_HIGH 128
+
+	if (session->inline_on) {
+		if (outstanding <= MLX5E_XDP_INLINE_WATERMARK_LOW)
+			session->inline_on = 0;
+		return;
+	}
+
+	/* inline is false */
+	if (outstanding >= MLX5E_XDP_INLINE_WATERMARK_HIGH)
+		session->inline_on = 1;
+}
+
 static inline void
-mlx5e_xdp_mpwqe_add_dseg(struct mlx5e_xdpsq *sq, dma_addr_t dma_addr, u16 dma_len)
+mlx5e_xdp_mpwqe_add_dseg(struct mlx5e_xdpsq *sq, struct mlx5e_xdp_info *xdpi,
+			 struct mlx5e_xdpsq_stats *stats)
 {
 	struct mlx5e_xdp_mpwqe *session = &sq->mpwqe;
+	dma_addr_t dma_addr    = xdpi->dma_addr;
+	struct xdp_frame *xdpf = xdpi->xdpf;
 	struct mlx5_wqe_data_seg *dseg =
-		(struct mlx5_wqe_data_seg *)session->wqe + session->ds_count++;
+		(struct mlx5_wqe_data_seg *)session->wqe + session->ds_count;
+	u16 dma_len = xdpf->len;
 
+	session->pkt_count++;
+
+#define MLX5E_XDP_INLINE_WQE_SZ_THRSD (256 - sizeof(struct mlx5_wqe_inline_seg))
+
+	if (session->inline_on && dma_len <= MLX5E_XDP_INLINE_WQE_SZ_THRSD) {
+		struct mlx5_wqe_inline_seg *inline_dseg =
+			(struct mlx5_wqe_inline_seg *)dseg;
+		u16 ds_len = sizeof(*inline_dseg) + dma_len;
+		u16 ds_cnt = DIV_ROUND_UP(ds_len, MLX5_SEND_WQE_DS);
+
+		if (unlikely(session->ds_count + ds_cnt > session->max_ds_count)) {
+			/* Not enough space for inline wqe, send with memory pointer */
+			session->complete = true;
+			goto no_inline;
+		}
+
+		inline_dseg->byte_count = cpu_to_be32(dma_len | MLX5_INLINE_SEG);
+		memcpy(inline_dseg->data, xdpf->data, dma_len);
+
+		session->ds_count += ds_cnt;
+		stats->inlnw++;
+		return;
+	}
+
+no_inline:
 	dseg->addr       = cpu_to_be64(dma_addr);
 	dseg->byte_count = cpu_to_be32(dma_len);
 	dseg->lkey       = sq->mkey_be;
+	session->ds_count++;
 }
 
 static inline void mlx5e_xdpsq_fetch_wqe(struct mlx5e_xdpsq *sq,
@@ -111,5 +163,4 @@ mlx5e_xdpi_fifo_pop(struct mlx5e_xdp_info_fifo *fifo)
 {
 	return fifo->xi[(*fifo->cc)++ & fifo->mask];
 }
-
 #endif
diff --git a/drivers/net/ethernet/mellanox/mlx5/core/en_main.c b/drivers/net/ethernet/mellanox/mlx5/core/en_main.c
index 7ab195ac7299..23df6f486c6a 100644
--- a/drivers/net/ethernet/mellanox/mlx5/core/en_main.c
+++ b/drivers/net/ethernet/mellanox/mlx5/core/en_main.c
@@ -1532,7 +1532,7 @@ static int mlx5e_open_xdpsq(struct mlx5e_channel *c,
 			dseg->lkey = sq->mkey_be;
 
 			wi->num_wqebbs = 1;
-			wi->num_ds     = 1;
+			wi->num_pkts   = 1;
 		}
 	}
 
diff --git a/drivers/net/ethernet/mellanox/mlx5/core/en_stats.c b/drivers/net/ethernet/mellanox/mlx5/core/en_stats.c
index 80ee48dcc0a3..ca0ff3b3fbd1 100644
--- a/drivers/net/ethernet/mellanox/mlx5/core/en_stats.c
+++ b/drivers/net/ethernet/mellanox/mlx5/core/en_stats.c
@@ -66,6 +66,7 @@ static const struct counter_desc sw_stats_desc[] = {
 	{ MLX5E_DECLARE_STAT(struct mlx5e_sw_stats, rx_xdp_redirect) },
 	{ MLX5E_DECLARE_STAT(struct mlx5e_sw_stats, rx_xdp_tx_xmit) },
 	{ MLX5E_DECLARE_STAT(struct mlx5e_sw_stats, rx_xdp_tx_mpwqe) },
+	{ MLX5E_DECLARE_STAT(struct mlx5e_sw_stats, rx_xdp_tx_inlnw) },
 	{ MLX5E_DECLARE_STAT(struct mlx5e_sw_stats, rx_xdp_tx_full) },
 	{ MLX5E_DECLARE_STAT(struct mlx5e_sw_stats, rx_xdp_tx_err) },
 	{ MLX5E_DECLARE_STAT(struct mlx5e_sw_stats, rx_xdp_tx_cqe) },
@@ -81,6 +82,7 @@ static const struct counter_desc sw_stats_desc[] = {
 	{ MLX5E_DECLARE_STAT(struct mlx5e_sw_stats, tx_cqe_err) },
 	{ MLX5E_DECLARE_STAT(struct mlx5e_sw_stats, tx_xdp_xmit) },
 	{ MLX5E_DECLARE_STAT(struct mlx5e_sw_stats, tx_xdp_mpwqe) },
+	{ MLX5E_DECLARE_STAT(struct mlx5e_sw_stats, tx_xdp_inlnw) },
 	{ MLX5E_DECLARE_STAT(struct mlx5e_sw_stats, tx_xdp_full) },
 	{ MLX5E_DECLARE_STAT(struct mlx5e_sw_stats, tx_xdp_err) },
 	{ MLX5E_DECLARE_STAT(struct mlx5e_sw_stats, tx_xdp_cqes) },
@@ -163,6 +165,7 @@ static void mlx5e_grp_sw_update_stats(struct mlx5e_priv *priv)
 		s->rx_xdp_redirect += rq_stats->xdp_redirect;
 		s->rx_xdp_tx_xmit  += xdpsq_stats->xmit;
 		s->rx_xdp_tx_mpwqe += xdpsq_stats->mpwqe;
+		s->rx_xdp_tx_inlnw += xdpsq_stats->inlnw;
 		s->rx_xdp_tx_full  += xdpsq_stats->full;
 		s->rx_xdp_tx_err   += xdpsq_stats->err;
 		s->rx_xdp_tx_cqe   += xdpsq_stats->cqes;
@@ -188,7 +191,8 @@ static void mlx5e_grp_sw_update_stats(struct mlx5e_priv *priv)
 		s->ch_eq_rearm    += ch_stats->eq_rearm;
 		/* xdp redirect */
 		s->tx_xdp_xmit    += xdpsq_red_stats->xmit;
-		s->tx_xdp_mpwqe += xdpsq_red_stats->mpwqe;
+		s->tx_xdp_mpwqe   += xdpsq_red_stats->mpwqe;
+		s->tx_xdp_inlnw   += xdpsq_red_stats->inlnw;
 		s->tx_xdp_full    += xdpsq_red_stats->full;
 		s->tx_xdp_err     += xdpsq_red_stats->err;
 		s->tx_xdp_cqes    += xdpsq_red_stats->cqes;
@@ -1250,6 +1254,7 @@ static const struct counter_desc sq_stats_desc[] = {
 static const struct counter_desc rq_xdpsq_stats_desc[] = {
 	{ MLX5E_DECLARE_RQ_XDPSQ_STAT(struct mlx5e_xdpsq_stats, xmit) },
 	{ MLX5E_DECLARE_RQ_XDPSQ_STAT(struct mlx5e_xdpsq_stats, mpwqe) },
+	{ MLX5E_DECLARE_RQ_XDPSQ_STAT(struct mlx5e_xdpsq_stats, inlnw) },
 	{ MLX5E_DECLARE_RQ_XDPSQ_STAT(struct mlx5e_xdpsq_stats, full) },
 	{ MLX5E_DECLARE_RQ_XDPSQ_STAT(struct mlx5e_xdpsq_stats, err) },
 	{ MLX5E_DECLARE_RQ_XDPSQ_STAT(struct mlx5e_xdpsq_stats, cqes) },
@@ -1258,6 +1263,7 @@ static const struct counter_desc rq_xdpsq_stats_desc[] = {
 static const struct counter_desc xdpsq_stats_desc[] = {
 	{ MLX5E_DECLARE_XDPSQ_STAT(struct mlx5e_xdpsq_stats, xmit) },
 	{ MLX5E_DECLARE_XDPSQ_STAT(struct mlx5e_xdpsq_stats, mpwqe) },
+	{ MLX5E_DECLARE_XDPSQ_STAT(struct mlx5e_xdpsq_stats, inlnw) },
 	{ MLX5E_DECLARE_XDPSQ_STAT(struct mlx5e_xdpsq_stats, full) },
 	{ MLX5E_DECLARE_XDPSQ_STAT(struct mlx5e_xdpsq_stats, err) },
 	{ MLX5E_DECLARE_XDPSQ_STAT(struct mlx5e_xdpsq_stats, cqes) },
diff --git a/drivers/net/ethernet/mellanox/mlx5/core/en_stats.h b/drivers/net/ethernet/mellanox/mlx5/core/en_stats.h
index 1f05ffa086b1..ac3c7c2a0964 100644
--- a/drivers/net/ethernet/mellanox/mlx5/core/en_stats.h
+++ b/drivers/net/ethernet/mellanox/mlx5/core/en_stats.h
@@ -78,6 +78,7 @@ struct mlx5e_sw_stats {
 	u64 rx_xdp_redirect;
 	u64 rx_xdp_tx_xmit;
 	u64 rx_xdp_tx_mpwqe;
+	u64 rx_xdp_tx_inlnw;
 	u64 rx_xdp_tx_full;
 	u64 rx_xdp_tx_err;
 	u64 rx_xdp_tx_cqe;
@@ -93,6 +94,7 @@ struct mlx5e_sw_stats {
 	u64 tx_cqe_err;
 	u64 tx_xdp_xmit;
 	u64 tx_xdp_mpwqe;
+	u64 tx_xdp_inlnw;
 	u64 tx_xdp_full;
 	u64 tx_xdp_err;
 	u64 tx_xdp_cqes;
@@ -244,6 +246,7 @@ struct mlx5e_sq_stats {
 struct mlx5e_xdpsq_stats {
 	u64 xmit;
 	u64 mpwqe;
+	u64 inlnw;
 	u64 full;
 	u64 err;
 	/* dirtied @completion */
diff --git a/include/linux/mlx5/qp.h b/include/linux/mlx5/qp.h
index 0343c81d4c5f..3ba4edbd17a6 100644
--- a/include/linux/mlx5/qp.h
+++ b/include/linux/mlx5/qp.h
@@ -395,6 +395,7 @@ struct mlx5_wqe_signature_seg {
 
 struct mlx5_wqe_inline_seg {
 	__be32	byte_count;
+	__be32	data[0];
 };
 
 enum mlx5_sig_type {