diff --git a/files/image_config/interfaces/interfaces.j2 b/files/image_config/interfaces/interfaces.j2
index dbedd5e941..1136c0970d 100644
--- a/files/image_config/interfaces/interfaces.j2
+++ b/files/image_config/interfaces/interfaces.j2
@@ -13,7 +13,7 @@ iface mgmt
 # The loopback network interface for mgmt VRF that is required for applications like NTP
     up ip link add lo-m type dummy
     up ip link set dev lo-m master mgmt
-    up ip addr add 127.0.0.1/8 dev lo-m
+    up ip addr add 127.0.0.1/16 dev lo-m
     up ip link set lo-m up
     down ip link delete dev lo-m
 {% endif %}
@@ -22,6 +22,9 @@ iface mgmt
 # The loopback network interface
 auto lo
 iface lo inet loopback
+   address 127.0.0.1
+   netmask 255.255.0.0
+   post-up ip addr del 127.0.0.1/8 dev lo
 {% endblock loopback %}
 {% block mgmt_interface %}
 
diff --git a/src/sonic-config-engine/tests/sample_output/interfaces b/src/sonic-config-engine/tests/sample_output/interfaces
index 07fd7a522c..f592911970 100644
--- a/src/sonic-config-engine/tests/sample_output/interfaces
+++ b/src/sonic-config-engine/tests/sample_output/interfaces
@@ -6,6 +6,9 @@
 # The loopback network interface
 auto lo
 iface lo inet loopback
+   address 127.0.0.1
+   netmask 255.255.0.0
+   post-up ip addr del 127.0.0.1/8 dev lo
 
 # The management network interface
 auto eth0
diff --git a/src/sonic-config-engine/tests/sample_output/mvrf_interfaces b/src/sonic-config-engine/tests/sample_output/mvrf_interfaces
index 085f5111c3..49d307aa2d 100644
--- a/src/sonic-config-engine/tests/sample_output/mvrf_interfaces
+++ b/src/sonic-config-engine/tests/sample_output/mvrf_interfaces
@@ -9,12 +9,15 @@ iface mgmt
 # The loopback network interface for mgmt VRF that is required for applications like NTP
     up ip link add lo-m type dummy
     up ip link set dev lo-m master mgmt
-    up ip addr add 127.0.0.1/8 dev lo-m
+    up ip addr add 127.0.0.1/16 dev lo-m
     up ip link set lo-m up
     down ip link delete dev lo-m
 # The loopback network interface
 auto lo
 iface lo inet loopback
+   address 127.0.0.1
+   netmask 255.255.0.0
+   post-up ip addr del 127.0.0.1/8 dev lo
 
 # The management network interface
 auto eth0