diff --git a/plugins/module_utils/network/iosxr/config/static_routes/static_routes.py b/plugins/module_utils/network/iosxr/config/static_routes/static_routes.py
index 0d56acc5c..a3b0cc35c 100644
--- a/plugins/module_utils/network/iosxr/config/static_routes/static_routes.py
+++ b/plugins/module_utils/network/iosxr/config/static_routes/static_routes.py
@@ -231,7 +231,10 @@ def _state_replaced(self, want, have):
                             if "." in item or ":" in item or "/" in item:
                                 cmd += " {0}".format(item)
                             else:
-                                cmd += " vrf {0}".format(item)
+                                if "vrf" in want:
+                                    cmd += " vrf {0}".format(item)
+                                else:
+                                    cmd += " {0}".format(item)
                         update_commands.append(cmd)
 
                 for key, value in iteritems(rotated_want_next_hops):
@@ -251,6 +254,7 @@ def _state_replaced(self, want, have):
                                 dest=want_route["dest"],
                                 next_hop=key,
                                 updates=updates,
+                                in_vrf="vrf" in want,
                             ),
                         )
 
@@ -421,6 +425,7 @@ def _state_merged(self, want, have):
                                     rotated_have_next_hops.get(key, {}),
                                     updates,
                                 ),
+                                in_vrf="vrf" in want,
                             ),
                         )
 
@@ -476,7 +481,10 @@ def _static_route_popper(self, want_afi, have_afi):
                             if "." in item or ":" in item or "/" in item:
                                 cmd += " {0}".format(item)
                             else:
-                                cmd += " vrf {0}".format(item)
+                                if "vrf" in want_afi:
+                                    cmd += " vrf {0}".format(item)
+                                else:
+                                    cmd += " {0}".format(item)
                         update_commands.append(cmd)
             if update_commands:
                 update_commands.insert(
@@ -580,7 +588,7 @@ def rotate_next_hops(self, next_hops):
 
         return next_hops_dict
 
-    def _compute_commands(self, dest, next_hop, updates=None):
+    def _compute_commands(self, dest, next_hop, updates=None, in_vrf=False):
         """This method computes a static route entry command
             from the specified `dest`, `next_hop` and `updates`
 
@@ -593,7 +601,14 @@ def _compute_commands(self, dest, next_hop, updates=None):
         command = dest
 
         for x in next_hop:
-            command += " {0}".format(x)
+            if "." in x or ":" in x or "/" in x:
+                command += " {0}".format(x)
+            else:
+                # Only add 'vrf' if in VRF context and not in normal context
+                if in_vrf:
+                    command += " vrf {0}".format(x)
+                else:
+                    command += " {0}".format(x)
 
         for key in sorted(updates):
             if key == "admin_distance":
diff --git a/tests/integration/targets/iosxr_static_routes/tests/cli/merged.yaml b/tests/integration/targets/iosxr_static_routes/tests/cli/merged.yaml
index c848e7c2b..4533f6ffb 100644
--- a/tests/integration/targets/iosxr_static_routes/tests/cli/merged.yaml
+++ b/tests/integration/targets/iosxr_static_routes/tests/cli/merged.yaml
@@ -29,6 +29,10 @@
                       - forward_router_address: 192.0.2.11
                         admin_distance: 100
 
+                  - dest: 192.168.17.0/24
+                    next_hops:
+                      - interface: Loopback0
+
               - afi: ipv6
                 safi: unicast
                 routes:
@@ -39,6 +43,9 @@
 
                       - interface: FastEthernet0/0/0/8
                         forward_router_address: 2001:db8:2000:2::1
+                  - dest: 2001:db8::/64
+                    next_hops:
+                      - interface: Loopback0
 
           - vrf: DEV_SITE
             address_families:
@@ -58,6 +65,14 @@
                         dest_vrf: test_1
                         track: ip_sla_2
                         vrflabel: 124
+          - vrf: TEST_VRF
+            address_families:
+              - afi: ipv4
+                safi: unicast
+                routes:
+                  - dest: 192.1.0.0/24
+                    next_hops:
+                      - interface: Loopback1
         state: merged
 
     - name: Assert that before dicts were correctly generated
diff --git a/tests/integration/targets/iosxr_static_routes/vars/main.yaml b/tests/integration/targets/iosxr_static_routes/vars/main.yaml
index b12c66984..a82b405c8 100644
--- a/tests/integration/targets/iosxr_static_routes/vars/main.yaml
+++ b/tests/integration/targets/iosxr_static_routes/vars/main.yaml
@@ -8,9 +8,11 @@ merged:
       10
     - 192.0.2.16/28 FastEthernet0/0/0/5 track ip_sla_1
     - 192.0.2.32/28 192.0.2.11 100
+    - 192.168.17.0/24 Loopback0
     - address-family ipv6 unicast
     - 2001:db8:1000::/36 FastEthernet0/0/0/7 description DC
     - 2001:db8:1000::/36 2001:db8:2000:2::1 FastEthernet0/0/0/8
+    - 2001:db8::/64 Loopback0
     - vrf DEV_SITE
     - address-family ipv4 unicast
     - 192.0.2.48/28 vrf test_1 192.0.2.12 description DEV
@@ -23,6 +25,9 @@ merged:
     - 192.0.2.48/28 vrf test_1 192.0.2.12 description DEV vrflabel 2301
     - 192.0.2.80/28 vrf test_1 192.0.2.14 FastEthernet0/0/0/2 description rt_test_1
       track ip_sla_2 vrflabel 124
+    - vrf TEST_VRF
+    - address-family ipv4 unicast
+    - 192.1.0.0/24 Loopback1
   after:
     - address_families:
         - afi: ipv4
@@ -40,6 +45,9 @@ merged:
               next_hops:
                 - admin_distance: 100
                   forward_router_address: 192.0.2.11
+            - dest: 192.168.17.0/24
+              next_hops:
+                - interface: Loopback0
           safi: unicast
         - afi: ipv6
           routes:
@@ -49,6 +57,9 @@ merged:
                   interface: FastEthernet0/0/0/7
                 - forward_router_address: 2001:db8:2000:2::1
                   interface: FastEthernet0/0/0/8
+            - dest: 2001:db8::/64
+              next_hops:
+                - interface: Loopback0
           safi: unicast
     - address_families:
         - afi: ipv4
@@ -67,6 +78,14 @@ merged:
                   vrflabel: 124
           safi: unicast
       vrf: DEV_SITE
+    - address_families:
+        - afi: ipv4
+          routes:
+            - dest: 192.1.0.0/24
+              next_hops:
+                - interface: Loopback1
+          safi: unicast
+      vrf: TEST_VRF
   update_after:
     - address_families:
         - afi: ipv4