diff --git a/netsim/ansible/templates/bgp/srlinux.macro.j2 b/netsim/ansible/templates/bgp/srlinux.macro.j2
index e6e66de7d..395c65879 100644
--- a/netsim/ansible/templates/bgp/srlinux.macro.j2
+++ b/netsim/ansible/templates/bgp/srlinux.macro.j2
@@ -51,69 +51,7 @@
     export-reject-all: False
     import-reject-all: False
 
-{#
-    Configure BGP Groups
-#}
-   group:
-{% for g in ['ibgp-ipv4','ibgp-ipv6','ebgp','ebgp-unnumbered'] %}
-{% set _type = g[:4] %}
-   - group-name: {{ g }}
-     admin-state: enable
-     import-policy: {{ import_policy if 'ebgp' in g else 'accept_all' }}
-     export-policy: {{ export_policy if 'ebgp' in g else 'accept_all' }}
-     timers:
-      connect-retry: 10
-      _annotate_connect-retry: "Reduce default 120s to 10s"
-      minimum-advertisement-interval: 1
-
-{# BGP communities #}
-{%   if bgp.community[ _type ]|default([]) %}
-{%   set list = bgp.community[ _type ] %}
-     send-community:
-      standard: {{ 'standard' in list or 'both' in list }}
-      large: {{ 'large' in list }}
-{%   endif %}
-
-{# iBGP #}
-{%   if g in ['ibgp-ipv4','ibgp-ipv6'] %}
-     peer-as: {{ _as }}
-     ipv4-unicast:
-      admin-state: {{ 'enable' if g == 'ibgp-ipv4' and 'ipv4' in bgp.address_families['ibgp'] else 'disable' }}
-     ipv6-unicast:
-      admin-state: {{ 'enable' if g == 'ibgp-ipv6' or 'ipv6' in bgp.address_families['ibgp'] else 'disable' }}
-     evpn:
-      admin-state: {{ 'enable' if evpn is defined and 'ibgp' in evpn.session|default([]) else 'disable' }}
-{%   if g[5:] in loopback %}
-     transport:
-      local-address: {{ loopback[ g[5:] ]|default('')|ipaddr('address') }}
-{%   endif %}
-{%   if vrf_bgp.rr|default(0) %}
-     route-reflector:
-      cluster-id: {{ vrf_bgp.rr_cluster_id|default(False) or router_id }}
-      client: True
-{%   endif %}
-{%   else %}
-
-{# eBGP #}
-     next-hop-self: {{ 'True' if bgp.next_hop_self|default(False) else 'False' }}
-{%   if g == 'ebgp-unnumbered' %}
-     local-as:
-     - as-number: {{ bgp.underlay_as|default(_as) }}
-       prepend-global-as: false
-     ipv4-unicast:
-      advertise-ipv6-next-hops: true
-      receive-ipv6-next-hops: true
-{%   else %}
-     ipv4-unicast:
-{%   endif %}
-      admin-state: {{ 'enable' if 'ipv4' in bgp.address_families['ebgp'] else 'disable' }}
-     ipv6-unicast:
-      admin-state: {{ 'enable' if 'ipv6' in bgp.address_families['ebgp'] else 'disable' }}
-{%   endif %}
-
-{% endfor %}
-
-{# Configure BGP address families #}
+{# Configure BGP address families globally #}
 {% for af in ['ipv4','ipv6'] if vrf_bgp[af]|default(0) %}
    {{ af }}-unicast:
     admin-state: enable
@@ -133,29 +71,83 @@
 
 {% endfor %}
 
+{% macro bgp_peer_group(name,type,neighbor,transport_ip) %}
+- path: network-instance[name={{vrf}}]/protocols/bgp/group[group-name={{name}}]
+  val:
+   admin-state: enable
+   ipv4-unicast:
+    admin-state: {{ 'enable' if 'ipv4' in neighbor.activate and neighbor.activate['ipv4'] else 'disable' }}
+   ipv6-unicast:
+    admin-state: {{ 'enable' if 'ipv6' in neighbor.activate and neighbor.activate['ipv6'] else 'disable' }}
+   import-policy: {{ import_policy if 'ebgp' in type else 'accept_all' }}
+   export-policy: {{ export_policy if 'ebgp' in type else 'accept_all' }}
+   timers:
+    connect-retry: 10
+    _annotate_connect-retry: "Reduce default 120s to 10s"
+    minimum-advertisement-interval: 1
+{% if vrf_bgp.community[ type ]|default([]) %}
+{% set list = vrf_bgp.community[ type ] %}
+   send-community:
+    standard: {{ 'standard' in list }}
+    large: {{ 'extended' in list }}
+{% endif %}
+{% if transport_ip %}
+   transport:
+    local-address: {{ transport_ip }}
+{% endif %}
+{% if 'ibgp' in type %}
+   next-hop-self: {{ vrf_bgp.next_hop_self|default(False) }}
+   peer-as: {{ neighbor.as }}
+{%  if vrf_bgp.rr|default(0) %}
+   route-reflector:
+    cluster-id: {{ vrf_bgp.rr_cluster_id|default(False) or router_id }}
+    client: True
+{%  endif %}
+{% endif %}
+{% endmacro %}
+
 {#
   Define IPv4 and IPv6 BGP neighbors
 #}
 {% for n in vrf_bgp.neighbors %}
 {% for af in ['ipv4','ipv6'] if n[af] is defined %}
+
 {% if n[af] is string %}
+{# (Re)create peer group #}
+{% set peer_group = 'ebgp' if n.type=='ebgp' else 'ibgp-local-as' if n.type=='localas_ibgp' else ('ibgp-'+af) %}
+{% set transport_ip = loopback[af]|ipaddr('address') if af in loopback and n.type=='ibgp' else None %}
+{{ bgp_peer_group(peer_group,'ibgp' if 'ibgp' in n.type else 'ebgp',n,transport_ip) }}
+
 - path: network-instance[name={{vrf}}]/protocols/bgp/neighbor[peer-address={{n[af]}}]
   val:
    description: {{ n.name }}
-   peer-group: {{ 'ebgp' if n.type=='ebgp' else ('ibgp-'+af) }}
-{% if n.type != 'ibgp' %}
+   peer-group: {{ peer_group }}
+{% if 'ebgp' in n.type %}
    peer-as: {{ n.as }}
+{% elif vrf_bgp.rr|default(False) and n.rr|default(False) %}
+   route-reflector:
+    client: False # Don't reflect routes between ibgp route reflectors
 {% endif %}
 {% if n.local_as is defined %}
    local-as:
    - as-number: {{ n.local_as }}
-{%   if n.type == 'ebgp' %}
-     prepend-global-as: False # Don't include iBGP AS in eBGP advertisements
-{%   endif %}
+     prepend-global-as: {{ not n.replace_global_as|default(True) }} # Don't include iBGP global AS in eBGP advertisements
 {% endif %}
-{% elif n[af]==True and af=='ipv6' %}
-{# BGP unnumbered for IPv6 LLA #}
+
+{% elif n[af]==True and af=='ipv6' and n.type == 'ebgp' %}
+{# BGP unnumbered for IPv6 LLA, only supported for EBGP peers #}
 {% set peer_group = "ebgp-unnumbered" + (('-' + n.local_as|string()) if n.local_as is defined else '') %}
+{{ bgp_peer_group(peer_group,'ebgp',n,None) }}
+{% if n.local_as is defined %}
+   local-as:
+   - as-number: {{ n.local_as }}
+     prepend-global-as: {{ not n.replace_global_as|default(True) }} # Don't include iBGP AS in eBGP advertisements
+{% endif %}
+{% if 'ipv4' in n.activate|default([]) and n.activate[ 'ipv4' ] %}
+   ipv4-unicast:
+     advertise-ipv6-next-hops: true
+     receive-ipv6-next-hops: true
+{% endif %}
 
 - path: network-instance[name={{vrf}}]/ip-forwarding
   val:
@@ -171,23 +163,6 @@
    peer-group: "{{ peer_group }}"
    allowed-peer-as: [ {{ n.as }}..{{ n.as }} ]
 
-{% if peer_group != "ebgp-unnumbered" %}
-- path: network-instance[name={{vrf}}]/protocols/bgp/group[group-name={{peer_group}}]
-  val:
-   admin-state: enable
-   import-policy: accept_all
-   export-policy: accept_all
-   timers:
-    connect-retry: 10
-    _annotate_connect-retry: "Reduce default 120s to 10s"
-    minimum-advertisement-interval: 1
-   local-as:
-   - as-number: {{ n.local_as }}
-     prepend-global-as: false
-   ipv4-unicast:
-     advertise-ipv6-next-hops: true
-     receive-ipv6-next-hops: true
-{% endif %}
 {% endfor %}
 {% endif %}
 {% endfor %}
diff --git a/netsim/ansible/templates/evpn/srlinux.j2 b/netsim/ansible/templates/evpn/srlinux.j2
index a2851456b..5b87fb6f2 100644
--- a/netsim/ansible/templates/evpn/srlinux.j2
+++ b/netsim/ansible/templates/evpn/srlinux.j2
@@ -12,6 +12,9 @@ updates:
    - group-name: {{ 'ibgp-ipv4' if type=='ibgp' else 'ebgp' }} # Could create a dedicated group for EVPN only?
      evpn:
       admin-state: enable
+{% if bgp.rr|default(0) %}
+     next-hop-self: False
+{% endif %}
    evpn:
     rapid-update: True
 {% endfor %}
diff --git a/netsim/ansible/templates/initial/srlinux.j2 b/netsim/ansible/templates/initial/srlinux.j2
index 01aecdf59..3b08d04a2 100644
--- a/netsim/ansible/templates/initial/srlinux.j2
+++ b/netsim/ansible/templates/initial/srlinux.j2
@@ -40,7 +40,7 @@ updates:
   val:
 {{  ip_addresses(loopback,False,True)  }}
 
-{% for l in interfaces|default([]) if (l.type in ['lan','vlan_member','svi'] or l.vlan is not defined) %}
+{% for l in interfaces|default([]) %}
 {% set if_name_index = l.ifname.split('.') %}
 {% set if_name = if_name_index[0] %}
 {% set if_index = if_name_index[1] if if_name_index|length > 1 else l.vlan.access_id|default(0) if l.vlan is defined else '0' %}
@@ -83,25 +83,27 @@ updates:
 {% set if_name_index = l.ifname.split('.') %}
 {% set if_name = if_name_index[0] %}
 {% set if_index = if_name_index[1] if if_name_index|length > 1 else '0' %}
+- path: network-instance[name={{ vrf }}]
+  val:
+   type: {{ 'default' if vrf=='default' else 'ip-vrf' }}
+   interface:
    - name: {{ if_name }}.{{ if_index }}
 {% endfor %}
 {% endmacro %}
 
-{# Make sure the default VRF is called 'default' #}
+{# Make sure the default VRF is called 'default', and has system0.0 interface #}
 - path: network-instance[name=default]
   val:
    type: default
    interface:
    - name: system0.0
+
 {{ list_interfaces('default') }}
 
 {% if vrfs is defined %}
 {% for vname,vdata in vrfs.items() %}
-- path: network-instance[name={{ vname }}]
-  val:
-   type: ip-vrf
-   # TODO: vdata.rd, vdata.import/export, vdata.af
-   interface:
+
+# TODO: vdata.rd, vdata.import/export, vdata.af
 {{ list_interfaces(vname) }}
 
 {% endfor %}
diff --git a/netsim/topology-defaults.yml b/netsim/topology-defaults.yml
index 050f5d1e7..1137e511b 100644
--- a/netsim/topology-defaults.yml
+++ b/netsim/topology-defaults.yml
@@ -607,8 +607,6 @@ devices:
       ansible_network_os: cumulus
       ansible_connection: paramiko
     features:
-      bgp:
-        activate_af: True
       initial:
         ipv4:
           unnumbered: True
@@ -676,10 +674,6 @@ devices:
       srgb_range_start: 500000
       srgb_range_size: 1000
       ipv6_sid_offset: 100
-    bgp:
-      address_families:
-        ibgp: [ ipv4, ipv6 ]
-        ebgp: [ ipv4, ipv6 ]      
     bfd:           # SR Linux supports lower BFD timers than the global default
       min_tx: 100
       min_rx: 100
@@ -704,8 +698,13 @@ devices:
         svi_interface_name: "irb0.{vlan}"
         subif_name: "{ifname}.{vlan.access_id}"
         mixed_trunk: True
+      bgp:
+        local_as: True
+        vrf_local_as: True
+        local_as_ibgp: True
+        activate_af: True
       vxlan:
-        requires: [ evpn ]
+        requires: [ evpn, vrf ]
       ospf:
         unnumbered: False
       isis:
diff --git a/tests/topology/expected/device-module-defaults.yml b/tests/topology/expected/device-module-defaults.yml
index 86929cfdf..b94aad01a 100644
--- a/tests/topology/expected/device-module-defaults.yml
+++ b/tests/topology/expected/device-module-defaults.yml
@@ -54,9 +54,6 @@ nodes:
       ipv4: true
     bgp:
       address_families:
-        ebgp:
-        - ipv4
-        - ipv6
         ibgp:
         - ipv4
       advertise_loopback: true