diff --git a/api/gr_api.h b/api/gr_api.h
index 0713d7bf9..eaa8c80e1 100644
--- a/api/gr_api.h
+++ b/api/gr_api.h
@@ -11,7 +11,7 @@
 #include <stdlib.h>
 
 // Must be bumped when making non-backward compatible changes in API headers
-#define GR_API_VERSION 3
+#define GR_API_VERSION 4
 
 // API request header.
 struct gr_api_request {
diff --git a/api/gr_net_compat.h b/api/gr_net_compat.h
index bcd5b1e35..2b3d95864 100644
--- a/api/gr_net_compat.h
+++ b/api/gr_net_compat.h
@@ -15,6 +15,14 @@ struct rte_ipv6_addr {
 	uint8_t a[RTE_IPV6_ADDR_SIZE];
 };
 
+static inline bool rte_ipv6_addr_is_unspec(const struct rte_ipv6_addr *ip) {
+	for (unsigned i = 0; i < RTE_IPV6_ADDR_SIZE; i++) {
+		if (ip->a[i] != 0)
+			return false;
+	}
+	return true;
+}
+
 static inline void rte_ipv6_addr_mask(struct rte_ipv6_addr *ip, uint8_t depth) {
 	if (depth < RTE_IPV6_MAX_DEPTH) {
 		unsigned int d = depth / CHAR_BIT;
diff --git a/frr/rt_grout.c b/frr/rt_grout.c
index 600afa8bf..becc18ded 100644
--- a/frr/rt_grout.c
+++ b/frr/rt_grout.c
@@ -306,7 +306,7 @@ static int grout_gr_nexthop_to_frr_nexthop(
 			encap_behavior
 #if CURRENT_FRR_VERSION >= MAKE_FRRVERSION(10, 8, 0)
 			,
-			NULL
+			rte_ipv6_addr_is_unspec(&sr6->encap_src) ? NULL : (void *)&sr6->encap_src
 #endif
 		);
 		nh->type = nh->ifindex ? NEXTHOP_TYPE_IPV6_IFINDEX : NEXTHOP_TYPE_IPV6;
@@ -850,6 +850,11 @@ grout_add_nexthop(uint32_t nh_id, gr_nh_origin_t origin, const struct nexthop *n
 			memcpy(&sr6->seglist[i],
 			       &nh->nh_srv6->seg6_segs->seg[i],
 			       sizeof(sr6->seglist[i]));
+#if CURRENT_FRR_VERSION >= MAKE_FRRVERSION(10, 8, 0)
+		memcpy(&sr6->encap_src,
+		       &nh->nh_srv6->seg6_segs->encap_source,
+		       sizeof(sr6->encap_src));
+#endif
 
 		break;
 	case GR_NH_T_BLACKHOLE:
diff --git a/modules/srv6/api/gr_srv6.h b/modules/srv6/api/gr_srv6.h
index c64dcf44e..3e0bd5b7d 100644
--- a/modules/srv6/api/gr_srv6.h
+++ b/modules/srv6/api/gr_srv6.h
@@ -27,6 +27,7 @@ typedef enum : uint8_t {
 // Used with GR_NH_T_SR6_OUTPUT nexthops via GR_NH_ADD from gr_infra.h.
 struct gr_nexthop_info_srv6 {
 	gr_srv6_encap_behavior_t encap_behavior;
+	struct rte_ipv6_addr encap_src;
 	uint8_t n_seglist;
 	struct rte_ipv6_addr seglist[];
 };
diff --git a/modules/srv6/cli/route.c b/modules/srv6/cli/route.c
index cf7e7f1ab..a052ce3e0 100644
--- a/modules/srv6/cli/route.c
+++ b/modules/srv6/cli/route.c
@@ -60,6 +60,9 @@ static cmd_status_t srv6_nh_add(struct gr_api_client *c, const struct ec_pnode *
 	else
 		sr6->encap_behavior = SR_H_ENCAPS;
 
+	if (arg_ip6(p, "SRC", &sr6->encap_src) < 0 && errno != ENOENT)
+		goto out;
+
 	if (gr_api_client_send_recv(c, GR_NH_ADD, len, req, NULL) < 0)
 		goto out;
 
@@ -108,6 +111,7 @@ static cmd_status_t srv6_tunsrc_show(struct gr_api_client *c, const struct ec_pn
 
 static void add_columns_srv6(struct gr_table *table) {
 	gr_table_column(table, "ENCAP", GR_DISP_LEFT);
+	gr_table_column(table, "ENCAP_SRC", GR_DISP_LEFT);
 	gr_table_column(table, "SEGLIST", GR_DISP_STR_ARRAY);
 }
 
@@ -122,6 +126,8 @@ static void fill_table_srv6(struct gr_table *table, unsigned start_col, const vo
 		"%s",
 		sr6->encap_behavior == SR_H_ENCAPS_RED ? "h.encaps.red" : "h.encaps"
 	);
+	if (!rte_ipv6_addr_is_unspec(&sr6->encap_src))
+		gr_table_cell(table, start_col + 1, IP6_F, &sr6->encap_src);
 	for (unsigned i = 0; i < sr6->n_seglist; i++) {
 		SAFE_BUF(snprintf, sizeof(buf), "%s" IP6_F, i > 0 ? " " : "", &sr6->seglist[i]);
 		if (sizeof(buf) - n < 50) {
@@ -131,7 +137,7 @@ static void fill_table_srv6(struct gr_table *table, unsigned start_col, const vo
 	}
 err:
 	if (n > 0)
-		gr_table_cell(table, start_col + 1, "%s", buf);
+		gr_table_cell(table, start_col + 2, "%s", buf);
 }
 
 static void fill_object_srv6(struct gr_object *o, const void *info) {
@@ -144,6 +150,8 @@ static void fill_object_srv6(struct gr_object *o, const void *info) {
 		"%s",
 		sr6->encap_behavior == SR_H_ENCAPS_RED ? "h.encaps.red" : "h.encaps"
 	);
+	if (!rte_ipv6_addr_is_unspec(&sr6->encap_src))
+		gr_object_field(o, "encap_src", 0, IP6_F, &sr6->encap_src);
 	gr_object_array_open(o, "seglist");
 	for (unsigned i = 0; i < sr6->n_seglist; i++)
 		gr_object_array_item(o, 0, IP6_F, &sr6->seglist[i]);
@@ -165,12 +173,13 @@ static int ctx_init(struct ec_node *root) {
 
 	ret = CLI_COMMAND(
 		NEXTHOP_ADD_CTX(root),
-		"srv6 seglist SEGLIST+ [(encap h.encaps|h.encaps.red),(vrf VRF),(id ID)]",
+		"srv6 seglist SEGLIST+ [(encap h.encaps|h.encaps.red),(src SRC),(vrf VRF),(id ID)]",
 		srv6_nh_add,
 		"Add SRv6 encap nexthop.",
 		with_help("Encaps.", ec_node_str("h.encaps", "h.encaps")),
 		with_help("Encaps Reduced.", ec_node_str("h.encaps.red", "h.encaps.red")),
 		with_help("Next SID to visit.", ec_node_re("SEGLIST", IPV6_RE)),
+		with_help("Encap source address.", ec_node_re("SRC", IPV6_RE)),
 		with_help("Nexthop ID.", ec_node_uint("ID", 1, UINT32_MAX - 1, 10)),
 		with_help("L3 routing domain name.", ec_node_dyn("VRF", complete_vrf_names, NULL))
 	);
diff --git a/modules/srv6/control/route.c b/modules/srv6/control/route.c
index a0ae585c9..38c44f386 100644
--- a/modules/srv6/control/route.c
+++ b/modules/srv6/control/route.c
@@ -17,6 +17,9 @@ static bool srv6_output_nh_equal(const struct nexthop *a, const struct nexthop *
 	if (ad->encap != bd->encap)
 		return false;
 
+	if (!rte_ipv6_addr_eq(&ad->encap_src, &bd->encap_src))
+		return false;
+
 	if (ad->n_seglist != bd->n_seglist)
 		return false;
 
@@ -40,6 +43,8 @@ static int srv6_output_nh_import_info(struct nexthop *nh, const void *info) {
 	memcpy(seglist, pub->seglist, sizeof(*seglist) * pub->n_seglist);
 
 	priv->encap = pub->encap_behavior;
+	priv->encap_src = pub->encap_src;
+	priv->flags = rte_ipv6_addr_is_unspec(&pub->encap_src) ? 0 : SR_ENCAP_F_SRC;
 	priv->n_seglist = pub->n_seglist;
 	tmp = priv->seglist;
 	priv->seglist = seglist;
@@ -63,6 +68,7 @@ static struct gr_nexthop *srv6_output_nh_to_api(const struct nexthop *nh, size_t
 	sr6_pub = (struct gr_nexthop_info_srv6 *)pub->info;
 
 	sr6_pub->encap_behavior = sr6_priv->encap;
+	sr6_pub->encap_src = sr6_priv->encap_src;
 	sr6_pub->n_seglist = sr6_priv->n_seglist;
 	memcpy(sr6_pub->seglist,
 	       sr6_priv->seglist,
diff --git a/modules/srv6/control/srv6.h b/modules/srv6/control/srv6.h
index 32ada5358..1c96eb84a 100644
--- a/modules/srv6/control/srv6.h
+++ b/modules/srv6/control/srv6.h
@@ -13,14 +13,20 @@
 //
 GR_NH_TYPE_INFO(GR_NH_T_SR6_LOCAL, nexthop_info_srv6_local, { BASE(gr_nexthop_info_srv6_local); });
 
+typedef enum : uint8_t {
+	SR_ENCAP_F_SRC = GR_BIT8(0),
+} sr_encap_flags_t;
+
 //
 // srv6 encap data is allocated dynamically.
 // A pointer to it is stored in nexthop priv.
 //
 GR_NH_TYPE_INFO(GR_NH_T_SR6_OUTPUT, nexthop_info_srv6_output, {
 	gr_srv6_encap_behavior_t encap;
+	sr_encap_flags_t flags;
 	uint16_t n_seglist;
 	struct rte_ipv6_addr *seglist;
+	struct rte_ipv6_addr encap_src;
 });
 
 extern struct nexthop *tunsrc_nh;
diff --git a/modules/srv6/datapath/srv6_output.c b/modules/srv6/datapath/srv6_output.c
index 5789892d1..3d40b94c9 100644
--- a/modules/srv6/datapath/srv6_output.c
+++ b/modules/srv6/datapath/srv6_output.c
@@ -137,15 +137,17 @@ srv6_output_process(struct rte_graph *graph, struct rte_node *node, void **objs,
 		}
 		l3_mbuf_data(m)->nh = nh;
 
-		nh = sr_tunsrc_get(nh->iface_id, &d->seglist[0]);
-		if (nh == NULL) {
-			// cannot output packet on interface that does not have ip6 addr
-			edge = NO_ROUTE;
-			goto next;
+		if (d->flags & SR_ENCAP_F_SRC) {
+			ip6_set_fields(outer_ip6, plen, proto, &d->encap_src, &d->seglist[0]);
+		} else {
+			nh = sr_tunsrc_get(nh->iface_id, &d->seglist[0]);
+			if (nh == NULL) {
+				edge = NO_ROUTE;
+				goto next;
+			}
+			l3 = nexthop_info_l3(nh);
+			ip6_set_fields(outer_ip6, plen, proto, &l3->ipv6, &d->seglist[0]);
 		}
-		l3 = nexthop_info_l3(nh);
-
-		ip6_set_fields(outer_ip6, plen, proto, &l3->ipv6, &d->seglist[0]);
 		edge = IP6_OUTPUT;
 
 next:
diff --git a/smoke/_init_frr.sh b/smoke/_init_frr.sh
index 23f3e237e..341bebac6 100644
--- a/smoke/_init_frr.sh
+++ b/smoke/_init_frr.sh
@@ -170,7 +170,7 @@ set_srv6_localsid() {
 exit"
 }
 
-# set_srv6_route [--persist] <prefix> <next-hop|iface>
+# set_srv6_route [--persist] [--encap-src <addr>] <prefix> <next-hop|iface>
 #                [<vrf> [<nexthop-vrf>]] <sid1> [sid2 sid3 ...]
 #
 # EXAMPLES
@@ -185,6 +185,8 @@ exit"
 set_srv6_route() {
 	local persist=0
 	[ "$1" = "--persist" ] && { persist=1; shift; }
+	local encap_src=""
+	[ "$1" = "--encap-src" ] && { encap_src=$2; shift 2; }
 	local prefix="$1"
 	local nhop="$2"
 	shift 2
@@ -232,9 +234,12 @@ set_srv6_route() {
 	local nh_vrf_clause=""
 	[ -n "$nexthop_vrf_name" ] && nh_vrf_clause=" nexthop-vrf ${nexthop_vrf_name}"
 
+	local encap_src_clause=""
+	[ -n "$encap_src" ] && encap_src_clause=" encap-source ${encap_src}"
+
 	_apply_frr_config "$persist" \
 		"$route add: vrf=$gr_vrf_name $prefix origin=zebra_static via type=SRv6 .*${sids[0]}" \
-		"${frr_ip} route ${prefix} ${nhop} segments ${seg_frr} vrf ${vrf_name}${nh_vrf_clause}"
+		"${frr_ip} route ${prefix} ${nhop} segments ${seg_frr}${encap_src_clause} vrf ${vrf_name}${nh_vrf_clause}"
 }
 
 # kill_frr_daemons <daemon> [<daemon>...]
diff --git a/smoke/srv6_encapsrc_frr_test.sh b/smoke/srv6_encapsrc_frr_test.sh
new file mode 100755
index 000000000..0a156833f
--- /dev/null
+++ b/smoke/srv6_encapsrc_frr_test.sh
@@ -0,0 +1,76 @@
+#!/bin/bash
+# SPDX-License-Identifier: BSD-3-Clause
+# Copyright (c) 2026 Robin Jarry
+
+set -e
+zebra=$(PATH="$1/frr_install/sbin:$1/frr_install/bin:$PATH" command -v zebra)
+frr_version=$($zebra --version | sed -En 's/zebra version //p')
+min_version=$(printf '%s\n%s\n' "$frr_version" "10.8.0" | sort -V | head -n1)
+if ! [ "$min_version" = "10.8.0" ]; then
+	echo "$0: FRR $frr_version does not support per-nexthop encap source"
+	exit 125
+fi
+
+. $(dirname $0)/_init_frr.sh
+
+create_interface p0
+create_interface p1
+
+for n in 0 1; do
+	p=x-p$n
+	ns=n$n
+	netns_add $ns
+	move_to_netns $p $ns
+done
+ip -n n0 addr add 192.168.61.2/24 dev x-p0
+ip -n n1 addr add fd00:102::2/32 dev x-p1
+
+set_ip_address p0 192.168.61.1/24
+set_ip_address p1 fd00:102::1/32
+
+#
+# network layout:
+#  (client) p0(netns) <--> p0 <grout> p1 <--->  p1(netns)
+#       ipv4 ---------------|        srv6        |-- ipv4
+#
+# test case:
+#   - configure an SRv6 route with an explicit encap source via FRR
+#   - verify grout uses the per-nexthop source instead of the global one
+#
+
+# only linux's p1 will see srv6
+ip netns exec n1 sysctl -w net.ipv6.conf.x-p1.seg6_enabled=1
+ip netns exec n1 sysctl -w net.ipv6.conf.x-p1.forwarding=1
+
+# client default route
+ip -n n0 route add default via 192.168.61.1 dev x-p0
+
+# linux decap and reply network
+ip -n n1 -6 route add fd00:202:200:: \
+	encap seg6local action End.DX4 nh4 192.168.60.1 count dev x-p1
+ip -n n1 addr add 192.168.60.1/24 dev x-p1
+ip -n n1 route add 192.168.61.0/24 \
+	encap seg6 mode encap segs fd00:202:100:: dev x-p1
+ip -n n1 -6 route add fd00:202::/32 via fd00:102::1 dev x-p1
+
+# grout decap localsid
+set_srv6_localsid locator_grout fd00:202 fd00:202:100::
+
+# underlay route
+set_ip_route fd00:202::/32 fd00:102::2
+
+# SRv6 route with explicit per-nexthop encap source via FRR
+encap_src=fd00:102::42
+set_srv6_route --encap-src $encap_src 192.168.0.0/16 p1 fd00:202:200::
+
+# capture and verify the outer source address
+ip netns exec n1 timeout 5 tcpdump -c1 -nn -l \
+	"ip6 src $encap_src" -i x-p1 > $tmp/tcpdump.out 2>&1 &
+tcpdump_pid=$!
+sleep 1
+
+ip netns exec n0 ping -i0.01 -c3 -n 192.168.60.1
+wait $tcpdump_pid || true
+
+grep -q "$encap_src" $tmp/tcpdump.out \
+	|| fail "encapsulated packet did not use per-nexthop encap_src $encap_src"
diff --git a/smoke/srv6_test.sh b/smoke/srv6_test.sh
index 24b1b3696..26dd3b1ec 100755
--- a/smoke/srv6_test.sh
+++ b/smoke/srv6_test.sh
@@ -84,3 +84,27 @@ ip -n n1 route replace 192.168.61.0/24 encap seg6 mode encap segs fd00:202:0300:
 
 # test: ping goes through the NEXT-CSID transit node
 ip netns exec n0 ping -i0.01 -c3 -n 192.168.60.1
+
+#
+# Per-nexthop encap source test
+#
+# Create a new SRv6 output nexthop with an explicit source address and
+# verify the encapsulated packets use it as the outer IPv6 source.
+#
+
+encap_src=fd00:102::42
+grcli address add $encap_src/128 iface p1
+grcli nexthop add srv6 seglist fd00:202:200:: src $encap_src id 43
+grcli route add 192.168.0.0/16 via id 43
+
+# capture a few packets on x-p1 in n1
+ip netns exec n1 timeout 5 tcpdump -c1 -pnn -l \
+	"ip6 src $encap_src" -i x-p1 > $tmp/tcpdump.out 2>&1 &
+tcpdump_pid=$!
+sleep 1
+
+ip netns exec n0 ping -i0.01 -c3 -n 192.168.60.1
+wait $tcpdump_pid || true
+
+grep -q "$encap_src" $tmp/tcpdump.out \
+	|| fail "encapsulated packet did not use per-nexthop encap_src $encap_src"