diff --git a/pkg/tcpip/header/eth.go b/pkg/tcpip/header/eth.go
index 95ade0e5c..1f18213e5 100644
--- a/pkg/tcpip/header/eth.go
+++ b/pkg/tcpip/header/eth.go
@@ -49,9 +49,9 @@ const (
 	// EthernetAddressSize is the size, in bytes, of an ethernet address.
 	EthernetAddressSize = 6
 
-	// unspecifiedEthernetAddress is the unspecified ethernet address
+	// UnspecifiedEthernetAddress is the unspecified ethernet address
 	// (all bits set to 0).
-	unspecifiedEthernetAddress = tcpip.LinkAddress("\x00\x00\x00\x00\x00\x00")
+	UnspecifiedEthernetAddress = tcpip.LinkAddress("\x00\x00\x00\x00\x00\x00")
 
 	// EthernetBroadcastAddress is an ethernet address that addresses every node
 	// on a local link.
@@ -134,7 +134,7 @@ func IsValidUnicastEthernetAddress(addr tcpip.LinkAddress) bool {
 		return false
 	}
 
-	if addr == unspecifiedEthernetAddress {
+	if addr == UnspecifiedEthernetAddress {
 		return false
 	}
 
diff --git a/pkg/tcpip/header/eth_test.go b/pkg/tcpip/header/eth_test.go
index bf9ccbf1a..adc04e855 100644
--- a/pkg/tcpip/header/eth_test.go
+++ b/pkg/tcpip/header/eth_test.go
@@ -44,7 +44,7 @@ func TestIsValidUnicastEthernetAddress(t *testing.T) {
 		},
 		{
 			"Unspecified",
-			unspecifiedEthernetAddress,
+			UnspecifiedEthernetAddress,
 			false,
 		},
 		{
@@ -91,7 +91,7 @@ func TestIsMulticastEthernetAddress(t *testing.T) {
 		},
 		{
 			"Unspecified",
-			unspecifiedEthernetAddress,
+			UnspecifiedEthernetAddress,
 			false,
 		},
 		{
diff --git a/pkg/tcpip/link/ethernet/ethernet.go b/pkg/tcpip/link/ethernet/ethernet.go
index b427c6170..b9db273d0 100644
--- a/pkg/tcpip/link/ethernet/ethernet.go
+++ b/pkg/tcpip/link/ethernet/ethernet.go
@@ -42,6 +42,14 @@ type Endpoint struct {
 	nested.Endpoint
 }
 
+// LinkAddress implements stack.LinkEndpoint.
+func (e *Endpoint) LinkAddress() tcpip.LinkAddress {
+	if l := e.Endpoint.LinkAddress(); len(l) != 0 {
+		return l
+	}
+	return header.UnspecifiedEthernetAddress
+}
+
 // DeliverNetworkPacket implements stack.NetworkDispatcher.
 func (e *Endpoint) DeliverNetworkPacket(_, _ tcpip.LinkAddress, _ tcpip.NetworkProtocolNumber, pkt *stack.PacketBuffer) {
 	hdr, ok := pkt.LinkHeader().Consume(header.EthernetMinimumSize)
@@ -57,18 +65,22 @@ func (e *Endpoint) DeliverNetworkPacket(_, _ tcpip.LinkAddress, _ tcpip.NetworkP
 
 // Capabilities implements stack.LinkEndpoint.
 func (e *Endpoint) Capabilities() stack.LinkEndpointCapabilities {
-	return stack.CapabilityResolutionRequired | e.Endpoint.Capabilities()
+	c := e.Endpoint.Capabilities()
+	if c&stack.CapabilityLoopback == 0 {
+		c |= stack.CapabilityResolutionRequired
+	}
+	return c
 }
 
 // WritePacket implements stack.LinkEndpoint.
 func (e *Endpoint) WritePacket(r stack.RouteInfo, proto tcpip.NetworkProtocolNumber, pkt *stack.PacketBuffer) tcpip.Error {
-	e.AddHeader(e.Endpoint.LinkAddress(), r.RemoteLinkAddress, proto, pkt)
+	e.AddHeader(e.LinkAddress(), r.RemoteLinkAddress, proto, pkt)
 	return e.Endpoint.WritePacket(r, proto, pkt)
 }
 
 // WritePackets implements stack.LinkEndpoint.
 func (e *Endpoint) WritePackets(r stack.RouteInfo, pkts stack.PacketBufferList, proto tcpip.NetworkProtocolNumber) (int, tcpip.Error) {
-	linkAddr := e.Endpoint.LinkAddress()
+	linkAddr := e.LinkAddress()
 
 	for pkt := pkts.Front(); pkt != nil; pkt = pkt.Next() {
 		e.AddHeader(linkAddr, r.RemoteLinkAddress, proto, pkt)
@@ -83,7 +95,10 @@ func (e *Endpoint) MaxHeaderLength() uint16 {
 }
 
 // ARPHardwareType implements stack.LinkEndpoint.
-func (*Endpoint) ARPHardwareType() header.ARPHardwareType {
+func (e *Endpoint) ARPHardwareType() header.ARPHardwareType {
+	if a := e.Endpoint.ARPHardwareType(); a != header.ARPHardwareNone {
+		return a
+	}
 	return header.ARPHardwareEther
 }
 
diff --git a/pkg/tcpip/transport/raw/endpoint.go b/pkg/tcpip/transport/raw/endpoint.go
index b3d8951ff..55854ba59 100644
--- a/pkg/tcpip/transport/raw/endpoint.go
+++ b/pkg/tcpip/transport/raw/endpoint.go
@@ -321,28 +321,26 @@ func (e *endpoint) write(p tcpip.Payloader, opts tcpip.WriteOptions) (int64, tcp
 	}
 	defer route.Release()
 
+	pkt := stack.NewPacketBuffer(stack.PacketBufferOptions{
+		ReserveHeaderBytes: int(route.MaxHeaderLength()),
+		Data:               buffer.View(payloadBytes).ToVectorisedView(),
+	})
+	pkt.Owner = owner
+
 	if e.ops.GetHeaderIncluded() {
-		pkt := stack.NewPacketBuffer(stack.PacketBufferOptions{
-			Data: buffer.View(payloadBytes).ToVectorisedView(),
-		})
 		if err := route.WriteHeaderIncludedPacket(pkt); err != nil {
 			return 0, err
 		}
-	} else {
-		pkt := stack.NewPacketBuffer(stack.PacketBufferOptions{
-			ReserveHeaderBytes: int(route.MaxHeaderLength()),
-			Data:               buffer.View(payloadBytes).ToVectorisedView(),
-		})
-		pkt.Owner = owner
-		if err := route.WritePacket(stack.NetworkHeaderParams{
-			Protocol: e.TransProto,
-			TTL:      route.DefaultTTL(),
-			TOS:      stack.DefaultTOS,
-		}, pkt); err != nil {
-			return 0, err
-		}
+		return int64(len(payloadBytes)), nil
 	}
 
+	if err := route.WritePacket(stack.NetworkHeaderParams{
+		Protocol: e.TransProto,
+		TTL:      route.DefaultTTL(),
+		TOS:      stack.DefaultTOS,
+	}, pkt); err != nil {
+		return 0, err
+	}
 	return int64(len(payloadBytes)), nil
 }
 
diff --git a/runsc/boot/BUILD b/runsc/boot/BUILD
index 1c57f9dd5..0ded907f0 100644
--- a/runsc/boot/BUILD
+++ b/runsc/boot/BUILD
@@ -97,6 +97,7 @@ go_library(
         "//pkg/sentry/watchdog",
         "//pkg/sync",
         "//pkg/tcpip",
+        "//pkg/tcpip/link/ethernet",
         "//pkg/tcpip/link/fdbased",
         "//pkg/tcpip/link/loopback",
         "//pkg/tcpip/link/packetsocket",
diff --git a/runsc/boot/loader.go b/runsc/boot/loader.go
index ec9188021..3f667cd74 100644
--- a/runsc/boot/loader.go
+++ b/runsc/boot/loader.go
@@ -58,6 +58,7 @@ import (
 	"gvisor.dev/gvisor/pkg/sentry/watchdog"
 	"gvisor.dev/gvisor/pkg/sync"
 	"gvisor.dev/gvisor/pkg/tcpip"
+	"gvisor.dev/gvisor/pkg/tcpip/link/ethernet"
 	"gvisor.dev/gvisor/pkg/tcpip/link/loopback"
 	"gvisor.dev/gvisor/pkg/tcpip/link/sniffer"
 	"gvisor.dev/gvisor/pkg/tcpip/network/arp"
@@ -1174,7 +1175,7 @@ func (f *sandboxNetstackCreator) CreateStack() (inet.Stack, error) {
 	n := &Network{Stack: s.(*netstack.Stack).Stack}
 	nicID := tcpip.NICID(f.uniqueID.UniqueID())
 	link := DefaultLoopbackLink
-	linkEP := loopback.New()
+	linkEP := ethernet.New(loopback.New())
 	if err := n.createNICWithAddrs(nicID, link.Name, linkEP, link.Addresses); err != nil {
 		return nil, err
 	}
diff --git a/runsc/boot/network.go b/runsc/boot/network.go
index 7e627e4c6..5c6879198 100644
--- a/runsc/boot/network.go
+++ b/runsc/boot/network.go
@@ -23,6 +23,7 @@ import (
 	"golang.org/x/sys/unix"
 	"gvisor.dev/gvisor/pkg/log"
 	"gvisor.dev/gvisor/pkg/tcpip"
+	"gvisor.dev/gvisor/pkg/tcpip/link/ethernet"
 	"gvisor.dev/gvisor/pkg/tcpip/link/fdbased"
 	"gvisor.dev/gvisor/pkg/tcpip/link/loopback"
 	"gvisor.dev/gvisor/pkg/tcpip/link/packetsocket"
@@ -169,7 +170,7 @@ func (n *Network) CreateLinksAndRoutes(args *CreateLinksAndRoutesArgs, _ *struct
 		nicID++
 		nicids[link.Name] = nicID
 
-		linkEP := loopback.New()
+		linkEP := ethernet.New(loopback.New())
 
 		log.Infof("Enabling loopback interface %q with id %d on addresses %+v", link.Name, nicID, link.Addresses)
 		if err := n.createNICWithAddrs(nicID, link.Name, linkEP, link.Addresses); err != nil {