diff --git a/third_party/meshnet/daemon/main.go b/third_party/meshnet/daemon/main.go
index 7ea4e7ac..8ee6dfcd 100644
--- a/third_party/meshnet/daemon/main.go
+++ b/third_party/meshnet/daemon/main.go
@@ -22,6 +22,8 @@ func main() {
 	}
 	defer cni.Cleanup()
 
+	wireutil.TuneSystem()
+
 	isDebug := flag.Bool("d", false, "enable degugging")
 	grpcPort, err := strconv.Atoi(os.Getenv("GRPC_PORT"))
 	if err != nil || grpcPort == 0 {
diff --git a/third_party/meshnet/daemon/vxlan/vxlan.go b/third_party/meshnet/daemon/vxlan/vxlan.go
index 496cab76..9bf49c51 100644
--- a/third_party/meshnet/daemon/vxlan/vxlan.go
+++ b/third_party/meshnet/daemon/vxlan/vxlan.go
@@ -13,6 +13,7 @@ import (
 	"github.com/vishvananda/netlink"
 
 	mpb "github.com/openconfig/kne/third_party/meshnet/daemon/proto/meshnet/v1beta1"
+	"github.com/openconfig/kne/third_party/meshnet/utils/wireutil"
 )
 
 var vxLanOvrlyLogger *log.Entry = nil
@@ -107,6 +108,20 @@ func CreateOrUpdate(v *mpb.RemotePod) error {
 		}
 	}
 
+	// Tune txqueuelen inside the container netns (configurable via LINK_TXQUEUELEN)
+	if podNs, err := ns.GetNS(veth.NsName); err == nil {
+		_ = podNs.Do(func(_ ns.NetNS) error {
+			if link, err := netlink.LinkByName(veth.LinkName); err == nil {
+				txqLen := wireutil.GetLinkTxQLen()
+				if err := netlink.LinkSetTxQLen(link, txqLen); err != nil {
+					vxLanOvrlyLogger.Warnf("failed to set txqueuelen %d on %s inside %s: %v", txqLen, veth.LinkName, veth.NsName, err)
+				}
+			}
+			return nil
+		})
+		podNs.Close()
+	}
+
 	return nil
 }
 
diff --git a/third_party/meshnet/utils/wireutil/sys_tune.go b/third_party/meshnet/utils/wireutil/sys_tune.go
index 67291abb..782094aa 100644
--- a/third_party/meshnet/utils/wireutil/sys_tune.go
+++ b/third_party/meshnet/utils/wireutil/sys_tune.go
@@ -3,6 +3,9 @@ package wireutil
 import (
 	"os"
 	"strconv"
+
+       log "github.com/sirupsen/logrus"
+       "golang.org/x/sys/unix"
 )
 
 // GetEnvInt reads an integer environment variable with a default fallback value if unset or invalid.
@@ -14,3 +17,62 @@ func GetEnvInt(key string, defaultVal int) int {
 	}
 	return defaultVal
 }
+
+func getEnvString(key string, defaultVal string) string {
+	if valStr := os.Getenv(key); valStr != "" {
+		return valStr
+	}
+	return defaultVal
+}
+
+// GetLinkTxQLen returns the configured link txqueuelen (default 10000, configurable via LINK_TXQUEUELEN).
+func GetLinkTxQLen() int {
+	return GetEnvInt("LINK_TXQUEUELEN", 10000)
+}
+
+// TuneSystem configures global OS sysctl tunables (backlog, buffers, ARP/neighbor GC thresholds,
+// multicast group limits, rp_filter, and IPv6 startup behavior) and RLIMIT_NOFILE for high-density,
+// high-throughput network topologies. Values can be customized via environment variables.
+func TuneSystem() {
+	// 1. Increase max open file descriptors for daemon (rlimit)
+	noFileLimit := GetEnvInt("RLIMIT_NOFILE", 1048576)
+	var rlim unix.Rlimit
+	rlim.Max = uint64(noFileLimit)
+	rlim.Cur = uint64(noFileLimit)
+	if err := unix.Setrlimit(unix.RLIMIT_NOFILE, &rlim); err != nil {
+		log.Warnf("TuneSystem: failed to set RLIMIT_NOFILE to %d: %v", noFileLimit, err)
+	} else {
+		log.Infof("TuneSystem: successfully set RLIMIT_NOFILE to %d", noFileLimit)
+	}
+
+	// 2. Sysctl kernel tunables for network device backlog, buffer limits, ARP/neighbor GC thresholds,
+	// multicast memberships, reverse path filtering, and IPv6 DAD/RS startup tuning.
+	sysctls := map[string]string{
+		"/proc/sys/net/core/netdev_max_backlog":                getEnvString("NETDEV_MAX_BACKLOG", "10000"),
+		"/proc/sys/net/core/rmem_max":                           getEnvString("RMEM_MAX", "16777216"),
+		"/proc/sys/net/core/wmem_max":                           getEnvString("WMEM_MAX", "16777216"),
+		"/proc/sys/net/core/rmem_default":                       getEnvString("RMEM_DEFAULT", "16777216"),
+		"/proc/sys/net/core/wmem_default":                       getEnvString("WMEM_DEFAULT", "16777216"),
+		"/proc/sys/net/ipv4/neigh/default/gc_thresh1":           getEnvString("ARP_GC_THRESH1", "1024"),
+		"/proc/sys/net/ipv4/neigh/default/gc_thresh2":           getEnvString("ARP_GC_THRESH2", "4096"),
+		"/proc/sys/net/ipv4/neigh/default/gc_thresh3":           getEnvString("ARP_GC_THRESH3", "8192"),
+		"/proc/sys/net/ipv6/neigh/default/gc_thresh1":           getEnvString("ARP_GC_THRESH1", "1024"),
+		"/proc/sys/net/ipv6/neigh/default/gc_thresh2":           getEnvString("ARP_GC_THRESH2", "4096"),
+		"/proc/sys/net/ipv6/neigh/default/gc_thresh3":           getEnvString("ARP_GC_THRESH3", "8192"),
+		"/proc/sys/net/ipv4/igmp_max_memberships":               getEnvString("IGMP_MAX_MEMBERSHIPS", "10000"),
+		"/proc/sys/net/ipv6/mld_max_msf":                        getEnvString("MLD_MAX_MSF", "4096"),
+		"/proc/sys/net/ipv4/conf/all/rp_filter":                 getEnvString("RP_FILTER", "2"),
+		"/proc/sys/net/ipv4/conf/default/rp_filter":             getEnvString("RP_FILTER", "2"),
+		"/proc/sys/net/ipv6/conf/default/accept_dad":            getEnvString("IPV6_ACCEPT_DAD", "0"),
+		"/proc/sys/net/ipv6/conf/default/router_solicitations": getEnvString("IPV6_ROUTER_SOLICITATIONS", "0"),
+		"/proc/sys/net/ipv6/route/max_size":                    getEnvString("IPV6_ROUTE_MAX_SIZE", "1048576"),
+	}
+
+	for path, val := range sysctls {
+		if err := os.WriteFile(path, []byte(val), 0644); err != nil {
+			log.Warnf("TuneSystem: failed to write %s to %s: %v", val, path, err)
+		} else {
+			log.Infof("TuneSystem: set %s = %s", path, val)
+		}
+	}
+}
diff --git a/third_party/meshnet/utils/wireutil/tap.go b/third_party/meshnet/utils/wireutil/tap.go
index b0bdde76..21be3781 100644
--- a/third_party/meshnet/utils/wireutil/tap.go
+++ b/third_party/meshnet/utils/wireutil/tap.go
@@ -62,6 +62,12 @@ func CreateOrAttachTAP(podNsPath string, ifName string, ipCIDR string) (*os.File
 			return fmt.Errorf("failed to find link %s inside netns %s: %w", ifName, podNsPath, err)
 		}
 
+		// Increase txqueuelen for high-throughput packet processing (configurable via LINK_TXQUEUELEN)
+		txqLen := GetLinkTxQLen()
+		if err := netlink.LinkSetTxQLen(link, txqLen); err != nil {
+			log.Warnf("CreateOrAttachTAP: failed to set txqueuelen %d on %s in netns %s: %v", txqLen, ifName, podNsPath, err)
+		}
+
 		if err := netlink.LinkSetUp(link); err != nil {
 			unix.Close(fd)
 			return fmt.Errorf("failed to set %s UP in netns %s: %w", ifName, podNsPath, err)
diff --git a/third_party/meshnet/utils/wireutil/veth.go b/third_party/meshnet/utils/wireutil/veth.go
index 8add33e5..58ebfdb9 100644
--- a/third_party/meshnet/utils/wireutil/veth.go
+++ b/third_party/meshnet/utils/wireutil/veth.go
@@ -173,6 +173,12 @@ func ConfigurePodLinks(podNsPath string, links []PodLinkConfig) error {
 				}
 			}
 
+			// Increase txqueuelen for high-throughput packet processing (configurable via LINK_TXQUEUELEN)
+			txqLen := GetLinkTxQLen()
+			if err := netlink.LinkSetTxQLen(link, txqLen); err != nil {
+				log.Warnf("ConfigurePodLinks: failed to set txqueuelen %d on %s inside %s: %v", txqLen, cfg.LocalIntf, podNsPath, err)
+			}
+
 			if err := netlink.LinkSetUp(link); err != nil {
 				return fmt.Errorf("failed to set %s UP inside %s: %w", cfg.LocalIntf, podNsPath, err)
 			}