diff --git a/files/build_templates/init_cfg.json.j2 b/files/build_templates/init_cfg.json.j2
index b490dc424b0a..39e180a1179d 100644
--- a/files/build_templates/init_cfg.json.j2
+++ b/files/build_templates/init_cfg.json.j2
@@ -133,5 +133,16 @@
             "digits_class": "true",
             "special_class": "true"
         }
+    },
+    "SYSTEM_DEFAULTS" : {
+{%- if include_mux == "y" %}
+        "mux_tunnel_egress_acl": {
+{%- if sonic_asic_platform == "mellanox" %}
+            "status": "enabled"
+{% else %}
+            "status": "disabled"
+{% endif %}
+        }
+{% endif %}
     }
 }
diff --git a/src/sonic-yang-models/tests/files/sample_config_db.json b/src/sonic-yang-models/tests/files/sample_config_db.json
index 1d0d04b3f9b5..a05b35c48295 100644
--- a/src/sonic-yang-models/tests/files/sample_config_db.json
+++ b/src/sonic-yang-models/tests/files/sample_config_db.json
@@ -2227,6 +2227,10 @@
         "SYSTEM_DEFAULTS": {
             "tunnel_qos_remap": {
                 "status": "enabled"
+            },
+            "mux_tunnel_egress_acl":
+            {
+                "status": "enabled"
             }
          },
         "LOSSLESS_TRAFFIC_PATTERN": {
diff --git a/src/sonic-yang-models/tests/yang_model_tests/tests_config/system_defaults.json b/src/sonic-yang-models/tests/yang_model_tests/tests_config/system_defaults.json
index a8ccc13c099d..da9a3e752bf7 100644
--- a/src/sonic-yang-models/tests/yang_model_tests/tests_config/system_defaults.json
+++ b/src/sonic-yang-models/tests/yang_model_tests/tests_config/system_defaults.json
@@ -6,6 +6,10 @@
                     {
                         "name": "tunnel_qos_remap",
                         "status": "enabled"
+                    },
+                    {
+                        "name": "mux_tunnel_egress_acl",
+                        "status": "enabled"
                     }
                 ]
             }
@@ -18,6 +22,10 @@
                     {
                         "name": "tunnel_qos_remap",
                         "status": "invalid_status"
+                    },
+                    {
+                        "name": "mux_tunnel_egress_acl",
+                        "status": "invalid_status"
                     }
                 ]
             }