Abstract: Example methods and systems for virtual tunnel endpoint (VTEP) mapping for overlay networking are described. One example may involve a computer system monitoring multiple VTEPs that are configured for overlay networking. In response to detecting a state transition associated with a first VTEP from a healthy state to an unhealthy state, the computer system may identify mapping information that associates a virtualized computing instance with the first VTEP in the unhealthy state; and update the mapping information to associate the virtualized computing instance with a second VTEP in the healthy state. In response to detecting an egress packet from the virtualized computing instance to a destination, an encapsulated packet may be generated and sent towards the destination based on the updated mapping information. The encapsulated packet may include the egress packet and an outer header identifying the second VTEP to be a source VTEP.