diff --git a/src/sonic-config-engine/minigraph.py b/src/sonic-config-engine/minigraph.py
index 7aa51304d2..caf687ac7e 100644
--- a/src/sonic-config-engine/minigraph.py
+++ b/src/sonic-config-engine/minigraph.py
@@ -1092,10 +1092,24 @@ def parse_xml(filename, platform=None, port_config_file=None, asic_name=None, hw
     for intf in intfs:
         if intf[0][0:4] == 'Vlan':
             vlan_intfs[intf] = {}
-            vlan_intfs[intf[0]] = {}
+
+            if bool(results['PEER_SWITCH']):
+                vlan_intfs[intf[0]] = {
+                    'proxy_arp': 'enabled',
+                    'grat_arp': 'enabled'
+                }
+            else:
+                vlan_intfs[intf[0]] = {}
         elif intf[0] in vlan_invert_mapping:
             vlan_intfs[(vlan_invert_mapping[intf[0]], intf[1])] = {}
-            vlan_intfs[vlan_invert_mapping[intf[0]]] = {}
+
+            if bool(results['PEER_SWITCH']):
+                vlan_intfs[vlan_invert_mapping[intf[0]]] = {
+                    'proxy_arp': 'enabled',
+                    'grat_arp': 'enabled'
+                }
+            else:
+                vlan_intfs[vlan_invert_mapping[intf[0]]] = {}
         elif intf[0][0:11] == 'PortChannel':
             pc_intfs[intf] = {}
             pc_intfs[intf[0]] = {}
diff --git a/src/sonic-config-engine/tests/test_minigraph_case.py b/src/sonic-config-engine/tests/test_minigraph_case.py
index 586ded0ebe..d24ec501bb 100644
--- a/src/sonic-config-engine/tests/test_minigraph_case.py
+++ b/src/sonic-config-engine/tests/test_minigraph_case.py
@@ -96,11 +96,23 @@ class TestCfgGenCaseInsensitive(TestCase):
         output = self.run_script(argument)
         self.assertEqual(output.strip(), "{('Vlan1000', 'Ethernet8'): {'tagging_mode': 'untagged'}}")
 
-    def test_minigraph_vlan_interfaces(self):
+    def test_minigraph_vlan_interfaces_keys(self):
         argument = '-m "' + self.sample_graph + '" -p "' + self.port_config + '" -v "VLAN_INTERFACE.keys()|list"'
         output = self.run_script(argument)
         self.assertEqual(output.strip(), "[('Vlan1000', '192.168.0.1/27'), 'Vlan1000']")
 
+    def test_minigraph_vlan_interfaces(self):
+        argument = '-m "' + self.sample_graph + '" -p "' + self.port_config + '" -v "VLAN_INTERFACE"'
+        output = self.run_script(argument)
+        expected_table = {
+            'Vlan1000|192.168.0.1/27': {},
+            'Vlan1000': {
+                'proxy_arp': 'enabled',
+                'grat_arp': 'enabled'
+            }
+        }
+        self.assertEqual(utils.to_dict(output.strip()), expected_table)
+
     def test_minigraph_portchannels(self):
         argument = '-m "' + self.sample_graph + '" -p "' + self.port_config + '" -v PORTCHANNEL'
         output = self.run_script(argument)