diff --git a/pkg/controller/installation/validation.go b/pkg/controller/installation/validation.go
index dbc65f3a37..32ea79f8ac 100644
--- a/pkg/controller/installation/validation.go
+++ b/pkg/controller/installation/validation.go
@@ -209,7 +209,9 @@ func validateCustomResource(instance *operatorv1.Installation) error {
 			}
 
 			if v6pool.Encapsulation != operatorv1.EncapsulationNone {
-				return fmt.Errorf("Encapsulation is not supported by IPv6 pools, but it is set for %s", v6pool.CIDR)
+				if instance.Spec.CalicoNetwork.LinuxDataplane == nil || *instance.Spec.CalicoNetwork.LinuxDataplane != operatorv1.LinuxDataplaneVPP {
+					return fmt.Errorf("Encapsulation is not supported by IPv6 pools, but it is set for %s", v6pool.CIDR)
+				}
 			}
 
 			if bpfDataplane {
diff --git a/pkg/render/node.go b/pkg/render/node.go
index 9ebb6d0a97..440c49cc3e 100644
--- a/pkg/render/node.go
+++ b/pkg/render/node.go
@@ -1228,6 +1228,21 @@ func (c *nodeComponent) nodeEnvVars() []corev1.EnvVar {
 		if v6pool := GetIPv6Pool(c.cfg.Installation.CalicoNetwork.IPPools); v6pool != nil {
 			nodeEnv = append(nodeEnv, corev1.EnvVar{Name: "CALICO_IPV6POOL_CIDR", Value: v6pool.CIDR})
 
+			switch v6pool.Encapsulation {
+			case operatorv1.EncapsulationIPIPCrossSubnet:
+				nodeEnv = append(nodeEnv, corev1.EnvVar{Name: "CALICO_IPV6POOL_IPIP", Value: "CrossSubnet"})
+			case operatorv1.EncapsulationIPIP:
+				nodeEnv = append(nodeEnv, corev1.EnvVar{Name: "CALICO_IPV6POOL_IPIP", Value: "Always"})
+			case operatorv1.EncapsulationVXLAN:
+				nodeEnv = append(nodeEnv, corev1.EnvVar{Name: "CALICO_IPV6POOL_VXLAN", Value: "Always"})
+			case operatorv1.EncapsulationVXLANCrossSubnet:
+				nodeEnv = append(nodeEnv, corev1.EnvVar{Name: "CALICO_IPV6POOL_VXLAN", Value: "CrossSubnet"})
+			case operatorv1.EncapsulationNone:
+				nodeEnv = append(nodeEnv, corev1.EnvVar{Name: "CALICO_IPV6POOL_IPIP", Value: "Never"})
+			default:
+				nodeEnv = append(nodeEnv, corev1.EnvVar{Name: "CALICO_IPV6POOL_IPIP", Value: "Always"})
+			}
+
 			if v6pool.BlockSize != nil {
 				nodeEnv = append(nodeEnv, corev1.EnvVar{Name: "CALICO_IPV6POOL_BLOCK_SIZE", Value: fmt.Sprintf("%d", *v6pool.BlockSize)})
 			}