diff --git a/ncm-network/src/main/perl/nmstate.pm b/ncm-network/src/main/perl/nmstate.pm
index 4b52bf4023..55d5595f96 100644
--- a/ncm-network/src/main/perl/nmstate.pm
+++ b/ncm-network/src/main/perl/nmstate.pm
@@ -62,8 +62,8 @@ sub is_valid_interface
             # Filename is either right at the beginning or following a slash
             (?: \A | / )
             # $1 will capture for example:
-            # eth0  bond1  eth0.101  bond0.102
-            ( \w+ \d+ (?: \. \d+ )? )
+            # eth0  bond1  eth0.101  bond0.102 or dummy_$key
+            ( \w+ \d+ (?: \. \d+ )? | dummy_.* )
             # Suffix (not captured)
             \. yml \z
         }x
@@ -717,13 +717,11 @@ sub Configure
     if ($net->{manage_vips} && defined($net->{vips})) {
         $self->verbose("Service address vips found, configuring dummy interfaces");
         my $vips = $net->{vips};
-        my $idx = 0;
         foreach my $name (sort keys %$vips) {
-            my $dummy_name = "dummy$idx";
+            my $dummy_name = "dummy_$name";
             my $nmstate_dummy_cfg = $self->generate_vip_config($dummy_name, $vips->{$name});
             my $dummy_filename = $self->iface_filename($dummy_name);
             $exifiles->{$dummy_filename} = $self->nmstate_file_dump($dummy_filename, $nmstate_dummy_cfg);
-            $idx++;
         }
     };
 
diff --git a/ncm-network/src/test/perl/nmstate_advance.t b/ncm-network/src/test/perl/nmstate_advance.t
index 8b30e414aa..cb87f4b726 100644
--- a/ncm-network/src/test/perl/nmstate_advance.t
+++ b/ncm-network/src/test/perl/nmstate_advance.t
@@ -166,6 +166,20 @@ routes:
     next-hop-interface: bond0
 EOF
 
+Readonly my $DUMMY_YML => <<EOF;
+# File generated by NCM::Component::nmstate. Do not edit
+---
+interfaces:
+- ipv4:
+    address:
+    - ip: 4.3.2.10
+      prefix-length: 32
+    enabled: true
+  name: dummy_myvip
+  profile-name: dummy_myvip
+  state: up
+  type: dummy
+EOF
 
 Readonly my $IB_YML => <<EOF;
 # File generated by NCM::Component::nmstate. Do not edit
@@ -272,5 +286,7 @@ is($ibyml, $IB_YML, "Exact ib0 yml config");
 my $ibpkyml = get_file_contents("/etc/nmstate/ib1.12345.yml");
 is($ibpkyml, $IBPKEY_YML, "Exact ib1 pkey yml config");
 
+my $dummy_yml = get_file_contents("/etc/nmstate/dummy_myvip.yml");
+is($dummy_yml, $DUMMY_YML, "Exact dummy interface yml config");
 
 done_testing();
diff --git a/ncm-network/src/test/resources/nmstate_advance.pan b/ncm-network/src/test/resources/nmstate_advance.pan
index 0f65a76d9f..84e2406b88 100644
--- a/ncm-network/src/test/resources/nmstate_advance.pan
+++ b/ncm-network/src/test/resources/nmstate_advance.pan
@@ -55,3 +55,10 @@ prefix "/system/network/interfaces/ib1.12345";
 "netmask" = "255.255.255.0";
 "broadcast" = "10.11.15.255";
 "type" = "Infiniband";
+
+# Test creating dummy interface. aka loopback interface needed for vip, such as zebra.
+"/system/network/manage_vips" = true;
+prefix "/system/network/vips/myvip";
+"fqdn" = "myvip.test.com";
+"ip" = "4.3.2.10";
+"interfaces/0" = "eth0";