diff --git a/agent/consul/catalog_endpoint.go b/agent/consul/catalog_endpoint.go
index a48a8133aa..1d238dd19d 100644
--- a/agent/consul/catalog_endpoint.go
+++ b/agent/consul/catalog_endpoint.go
@@ -885,3 +885,27 @@ func (c *Catalog) GatewayServices(args *structs.ServiceSpecificRequest, reply *s
 			return nil
 		})
 }
+
+func (c *Catalog) VirtualIPForService(args *structs.ServiceSpecificRequest, reply *string) error {
+	if done, err := c.srv.ForwardRPC("Catalog.VirtualIPForService", args, reply); done {
+		return err
+	}
+
+	var authzContext acl.AuthorizerContext
+	authz, err := c.srv.ResolveTokenAndDefaultMeta(args.Token, &args.EnterpriseMeta, &authzContext)
+	if err != nil {
+		return err
+	}
+
+	if err := c.srv.validateEnterpriseRequest(&args.EnterpriseMeta, false); err != nil {
+		return err
+	}
+
+	if authz.ServiceRead(args.ServiceName, &authzContext) != acl.Allow {
+		return acl.ErrPermissionDenied
+	}
+
+	state := c.srv.fsm.State()
+	*reply, err = state.VirtualIPForService(structs.NewServiceName(args.ServiceName, &args.EnterpriseMeta))
+	return err
+}
diff --git a/agent/consul/catalog_endpoint_test.go b/agent/consul/catalog_endpoint_test.go
index 8e36eb6864..c1b2a4d644 100644
--- a/agent/consul/catalog_endpoint_test.go
+++ b/agent/consul/catalog_endpoint_test.go
@@ -3905,3 +3905,100 @@ node "node" {
 		})
 	}
 }
+
+func TestCatalog_VirtualIPForService(t *testing.T) {
+	if testing.Short() {
+		t.Skip("too slow for testing.Short")
+	}
+
+	t.Parallel()
+	dir1, s1 := testServerWithConfig(t, func(c *Config) {
+		c.Build = "1.11.0"
+	})
+	defer os.RemoveAll(dir1)
+	defer s1.Shutdown()
+	codec := rpcClient(t, s1)
+	defer codec.Close()
+
+	testrpc.WaitForLeader(t, s1.RPC, "dc1")
+
+	err := s1.fsm.State().EnsureRegistration(1, &structs.RegisterRequest{
+		Node:    "foo",
+		Address: "127.0.0.1",
+		Service: &structs.NodeService{
+			Service: "api",
+			Connect: structs.ServiceConnect{
+				Native: true,
+			},
+		},
+	})
+	require.NoError(t, err)
+
+	args := structs.ServiceSpecificRequest{
+		Datacenter:  "dc1",
+		ServiceName: "api",
+	}
+	var out string
+	require.NoError(t, msgpackrpc.CallWithCodec(codec, "Catalog.VirtualIPForService", &args, &out))
+	require.Equal(t, "240.0.0.1", out)
+}
+
+func TestCatalog_VirtualIPForService_ACLDeny(t *testing.T) {
+	if testing.Short() {
+		t.Skip("too slow for testing.Short")
+	}
+
+	t.Parallel()
+	dir1, s1 := testServerWithConfig(t, func(c *Config) {
+		c.PrimaryDatacenter = "dc1"
+		c.ACLsEnabled = true
+		c.ACLMasterToken = "root"
+		c.ACLResolverSettings.ACLDefaultPolicy = "deny"
+		c.Build = "1.11.0"
+	})
+	defer os.RemoveAll(dir1)
+	defer s1.Shutdown()
+	codec := rpcClient(t, s1)
+	defer codec.Close()
+
+	testrpc.WaitForLeader(t, s1.RPC, "dc1")
+
+	err := s1.fsm.State().EnsureRegistration(1, &structs.RegisterRequest{
+		Node:    "foo",
+		Address: "127.0.0.1",
+		Service: &structs.NodeService{
+			Service: "api",
+			Connect: structs.ServiceConnect{
+				Native: true,
+			},
+		},
+	})
+	require.NoError(t, err)
+
+	// Call the endpoint with no token and expect permission denied.
+	args := structs.ServiceSpecificRequest{
+		Datacenter:  "dc1",
+		ServiceName: "api",
+	}
+	var out string
+	err = msgpackrpc.CallWithCodec(codec, "Catalog.VirtualIPForService", &args, &out)
+	require.Contains(t, err.Error(), acl.ErrPermissionDenied.Error())
+	require.Equal(t, "", out)
+
+	id := createToken(t, codec, `
+	service "api" {
+		policy = "read"
+	}`)
+
+	// Now try with the token and it will go through.
+	args.Token = id
+	require.NoError(t, msgpackrpc.CallWithCodec(codec, "Catalog.VirtualIPForService", &args, &out))
+	require.Equal(t, "240.0.0.1", out)
+
+	// Make sure we still get permission denied for an unknown service.
+	args.ServiceName = "nope"
+	var out2 string
+	err = msgpackrpc.CallWithCodec(codec, "Catalog.VirtualIPForService", &args, &out2)
+	require.Contains(t, err.Error(), acl.ErrPermissionDenied.Error())
+	require.Equal(t, "", out2)
+}
diff --git a/agent/consul/fsm/snapshot_oss.go b/agent/consul/fsm/snapshot_oss.go
index 81c26d3b79..7ebec8a331 100644
--- a/agent/consul/fsm/snapshot_oss.go
+++ b/agent/consul/fsm/snapshot_oss.go
@@ -33,9 +33,14 @@ func init() {
 	registerRestorer(structs.ACLAuthMethodSetRequestType, restoreAuthMethod)
 	registerRestorer(structs.FederationStateRequestType, restoreFederationState)
 	registerRestorer(structs.SystemMetadataRequestType, restoreSystemMetadata)
+	registerRestorer(structs.ServiceVirtualIPRequestType, restoreServiceVirtualIP)
+	registerRestorer(structs.FreeVirtualIPRequestType, restoreFreeVirtualIP)
 }
 
 func persistOSS(s *snapshot, sink raft.SnapshotSink, encoder *codec.Encoder) error {
+	if err := s.persistVirtualIPs(sink, encoder); err != nil {
+		return err
+	}
 	if err := s.persistNodes(sink, encoder); err != nil {
 		return err
 	}
@@ -510,6 +515,38 @@ func (s *snapshot) persistIndex(sink raft.SnapshotSink, encoder *codec.Encoder)
 	return nil
 }
 
+func (s *snapshot) persistVirtualIPs(sink raft.SnapshotSink, encoder *codec.Encoder) error {
+	serviceVIPs, err := s.state.ServiceVirtualIPs()
+	if err != nil {
+		return err
+	}
+
+	for entry := serviceVIPs.Next(); entry != nil; entry = serviceVIPs.Next() {
+		if _, err := sink.Write([]byte{byte(structs.ServiceVirtualIPRequestType)}); err != nil {
+			return err
+		}
+		if err := encoder.Encode(entry.(state.ServiceVirtualIP)); err != nil {
+			return err
+		}
+	}
+
+	freeVIPs, err := s.state.FreeVirtualIPs()
+	if err != nil {
+		return err
+	}
+
+	for entry := freeVIPs.Next(); entry != nil; entry = freeVIPs.Next() {
+		if _, err := sink.Write([]byte{byte(structs.FreeVirtualIPRequestType)}); err != nil {
+			return err
+		}
+		if err := encoder.Encode(entry.(state.FreeVirtualIP)); err != nil {
+			return err
+		}
+	}
+
+	return nil
+}
+
 func restoreRegistration(header *SnapshotHeader, restore *state.Restore, decoder *codec.Decoder) error {
 	var req structs.RegisterRequest
 	if err := decoder.Decode(&req); err != nil {
@@ -790,3 +827,25 @@ func restoreSystemMetadata(header *SnapshotHeader, restore *state.Restore, decod
 	}
 	return restore.SystemMetadataEntry(&req)
 }
+
+func restoreServiceVirtualIP(header *SnapshotHeader, restore *state.Restore, decoder *codec.Decoder) error {
+	var req state.ServiceVirtualIP
+	if err := decoder.Decode(&req); err != nil {
+		return err
+	}
+	if err := restore.ServiceVirtualIP(req); err != nil {
+		return err
+	}
+	return nil
+}
+
+func restoreFreeVirtualIP(header *SnapshotHeader, restore *state.Restore, decoder *codec.Decoder) error {
+	var req state.FreeVirtualIP
+	if err := decoder.Decode(&req); err != nil {
+		return err
+	}
+	if err := restore.FreeVirtualIP(req); err != nil {
+		return err
+	}
+	return nil
+}
diff --git a/agent/consul/fsm/snapshot_oss_test.go b/agent/consul/fsm/snapshot_oss_test.go
index 996cf2fd23..10e1cd0610 100644
--- a/agent/consul/fsm/snapshot_oss_test.go
+++ b/agent/consul/fsm/snapshot_oss_test.go
@@ -60,6 +60,7 @@ func TestFSM_SnapshotRestore_OSS(t *testing.T) {
 		Port:    80,
 		Connect: connectConf,
 	})
+
 	fsm.state.EnsureService(4, "foo", &structs.NodeService{ID: "db", Service: "db", Tags: []string{"primary"}, Address: "127.0.0.1", Port: 5000})
 	fsm.state.EnsureService(5, "baz", &structs.NodeService{ID: "web", Service: "web", Tags: nil, Address: "127.0.0.2", Port: 80})
 	fsm.state.EnsureService(6, "baz", &structs.NodeService{ID: "db", Service: "db", Tags: []string{"secondary"}, Address: "127.0.0.2", Port: 5000})
@@ -434,6 +435,35 @@ func TestFSM_SnapshotRestore_OSS(t *testing.T) {
 	}
 	require.NoError(t, fsm.state.EnsureConfigEntry(27, meshConfig))
 
+	// Connect-native services for virtual IP generation
+	systemMetadataEntry = &structs.SystemMetadataEntry{
+		Key:   structs.SystemMetadataVirtualIPsEnabled,
+		Value: "true",
+	}
+	require.NoError(t, fsm.state.SystemMetadataSet(28, systemMetadataEntry))
+
+	fsm.state.EnsureService(29, "foo", &structs.NodeService{
+		ID:      "frontend",
+		Service: "frontend",
+		Address: "127.0.0.1",
+		Port:    8000,
+		Connect: connectConf,
+	})
+	vip, err := fsm.state.VirtualIPForService(structs.NewServiceName("frontend", nil))
+	require.NoError(t, err)
+	require.Equal(t, vip, "240.0.0.1")
+
+	fsm.state.EnsureService(30, "foo", &structs.NodeService{
+		ID:      "backend",
+		Service: "backend",
+		Address: "127.0.0.1",
+		Port:    9000,
+		Connect: connectConf,
+	})
+	vip, err = fsm.state.VirtualIPForService(structs.NewServiceName("backend", nil))
+	require.NoError(t, err)
+	require.Equal(t, vip, "240.0.0.2")
+
 	// Snapshot
 	snap, err := fsm.Snapshot()
 	require.NoError(t, err)
@@ -519,7 +549,7 @@ func TestFSM_SnapshotRestore_OSS(t *testing.T) {
 
 	_, fooSrv, err := fsm2.state.NodeServices(nil, "foo", nil)
 	require.NoError(t, err)
-	require.Len(t, fooSrv.Services, 2)
+	require.Len(t, fooSrv.Services, 4)
 	require.Contains(t, fooSrv.Services["db"].Tags, "primary")
 	require.True(t, stringslice.Contains(fooSrv.Services["db"].Tags, "primary"))
 	require.Equal(t, 5001, fooSrv.Services["db"].Port)
@@ -538,6 +568,14 @@ func TestFSM_SnapshotRestore_OSS(t *testing.T) {
 	require.Equal(t, uint64(7), checks[0].CreateIndex)
 	require.Equal(t, uint64(25), checks[0].ModifyIndex)
 
+	// Verify virtual IPs are consistent.
+	vip, err = fsm2.state.VirtualIPForService(structs.NewServiceName("frontend", nil))
+	require.NoError(t, err)
+	require.Equal(t, vip, "240.0.0.1")
+	vip, err = fsm2.state.VirtualIPForService(structs.NewServiceName("backend", nil))
+	require.NoError(t, err)
+	require.Equal(t, vip, "240.0.0.2")
+
 	// Verify key is set
 	_, d, err := fsm2.state.KVSGet(nil, "/test", nil)
 	require.NoError(t, err)
@@ -700,8 +738,8 @@ func TestFSM_SnapshotRestore_OSS(t *testing.T) {
 	// Verify system metadata is restored.
 	_, systemMetadataLoaded, err := fsm2.state.SystemMetadataList(nil)
 	require.NoError(t, err)
-	require.Len(t, systemMetadataLoaded, 1)
-	require.Equal(t, systemMetadataEntry, systemMetadataLoaded[0])
+	require.Len(t, systemMetadataLoaded, 2)
+	require.Equal(t, systemMetadataEntry, systemMetadataLoaded[1])
 
 	// Verify service-intentions is restored
 	_, serviceIxnEntry, err := fsm2.state.ConfigEntry(nil, structs.ServiceIntentions, "foo", structs.DefaultEnterpriseMetaInDefaultPartition())
diff --git a/agent/consul/leader.go b/agent/consul/leader.go
index 674bc5a40e..c66d3fa2c4 100644
--- a/agent/consul/leader.go
+++ b/agent/consul/leader.go
@@ -55,6 +55,8 @@ var (
 	// minCentralizedConfigVersion is the minimum Consul version in which centralized
 	// config is supported
 	minCentralizedConfigVersion = version.Must(version.NewVersion("1.5.0"))
+
+	minVirtualIPVersion = version.Must(version.NewVersion("1.11.0"))
 )
 
 // monitorLeadership is used to monitor if we acquire or lose our role
@@ -186,6 +188,10 @@ RECONCILE:
 		s.logger.Error("failed to reconcile", "error", err)
 		goto WAIT
 	}
+	if err := s.setVirtualIPFlag(); err != nil {
+		s.logger.Error("failed to set virtual IP flag", "error", err)
+		goto WAIT
+	}
 
 	// Initial reconcile worked, now we can process the channel
 	// updates
@@ -213,6 +219,7 @@ WAIT:
 			goto RECONCILE
 		case member := <-reconcileCh:
 			s.reconcileMember(member)
+			s.setVirtualIPFlag()
 		case index := <-s.tombstoneGC.ExpireCh():
 			go s.reapTombstones(index)
 		case errCh := <-s.reassertLeaderCh:
@@ -315,6 +322,10 @@ func (s *Server) establishLeadership(ctx context.Context) error {
 		return err
 	}
 
+	if err := s.setVirtualIPFlag(); err != nil {
+		return err
+	}
+
 	s.setConsistentReadReady()
 
 	s.logger.Debug("successfully established leadership", "duration", time.Since(start))
@@ -881,6 +892,25 @@ func (s *Server) bootstrapConfigEntries(entries []structs.ConfigEntry) error {
 	return nil
 }
 
+func (s *Server) setVirtualIPFlag() error {
+	// Return early if the flag is already set.
+	val, err := s.getSystemMetadata(structs.SystemMetadataVirtualIPsEnabled)
+	if err != nil {
+		return err
+	}
+	if val != "" {
+		return nil
+	}
+
+	if ok, _ := ServersInDCMeetMinimumVersion(s, s.config.Datacenter, minVirtualIPVersion); !ok {
+		s.logger.Warn(fmt.Sprintf("can't allocate Virtual IPs until all servers >= %s",
+			minVirtualIPVersion.String()))
+		return nil
+	}
+
+	return s.setSystemMetadataKey(structs.SystemMetadataVirtualIPsEnabled, "true")
+}
+
 // reconcileReaped is used to reconcile nodes that have failed and been reaped
 // from Serf but remain in the catalog. This is done by looking for unknown nodes with serfHealth checks registered.
 // We generate a "reap" event to cause the node to be cleaned up.
@@ -996,6 +1026,7 @@ func (s *Server) reconcileMember(member serf.Member) error {
 			return nil
 		}
 	}
+
 	return nil
 }
 
diff --git a/agent/consul/leader_test.go b/agent/consul/leader_test.go
index 0f80de4e2b..3339964a08 100644
--- a/agent/consul/leader_test.go
+++ b/agent/consul/leader_test.go
@@ -2120,3 +2120,86 @@ func TestDatacenterSupportsIntentionsAsConfigEntries(t *testing.T) {
 		)
 	})
 }
+
+func TestLeader_EnableVirtualIPs(t *testing.T) {
+	if testing.Short() {
+		t.Skip("too slow for testing.Short")
+	}
+
+	conf := func(c *Config) {
+		c.Bootstrap = false
+		c.BootstrapExpect = 3
+		c.Datacenter = "dc1"
+		c.Build = "1.11.0"
+	}
+	dir1, s1 := testServerWithConfig(t, conf)
+	defer os.RemoveAll(dir1)
+	defer s1.Shutdown()
+	codec := rpcClient(t, s1)
+	defer codec.Close()
+
+	dir2, s2 := testServerWithConfig(t, conf)
+	defer os.RemoveAll(dir2)
+	defer s2.Shutdown()
+
+	dir3, s3 := testServerWithConfig(t, func(c *Config) {
+		conf(c)
+		c.Build = "1.10.0"
+	})
+	defer os.RemoveAll(dir3)
+	defer s3.Shutdown()
+
+	// Try to join and wait for all servers to get promoted
+	joinLAN(t, s2, s1)
+	joinLAN(t, s3, s1)
+	testrpc.WaitForLeader(t, s1.RPC, "dc1")
+
+	// Should have nothing stored.
+	state := s1.fsm.State()
+	_, entry, err := state.SystemMetadataGet(nil, structs.SystemMetadataVirtualIPsEnabled)
+	require.NoError(t, err)
+	require.Nil(t, entry)
+
+	// Register a connect-native service and make sure we don't have a virtual IP yet.
+	err = state.EnsureRegistration(10, &structs.RegisterRequest{
+		Node:    "foo",
+		Address: "127.0.0.1",
+		Service: &structs.NodeService{
+			Service: "api",
+			Connect: structs.ServiceConnect{
+				Native: true,
+			},
+		},
+	})
+	require.NoError(t, err)
+
+	vip, err := state.VirtualIPForService(structs.NewServiceName("api", nil))
+	require.NoError(t, err)
+	require.Equal(t, "", vip)
+
+	// Leave s3 and wait for the version to get updated.
+	require.NoError(t, s3.Leave())
+	retry.Run(t, func(r *retry.R) {
+		_, entry, err := state.SystemMetadataGet(nil, structs.SystemMetadataVirtualIPsEnabled)
+		require.NoError(r, err)
+		require.NotNil(r, entry)
+		require.Equal(r, "true", entry.Value)
+	})
+
+	// Update the connect-native service - now there should be a virtual IP assigned.
+	err = state.EnsureRegistration(20, &structs.RegisterRequest{
+		Node:    "foo",
+		Address: "127.0.0.2",
+		Service: &structs.NodeService{
+			Service: "api",
+			Connect: structs.ServiceConnect{
+				Native: true,
+			},
+		},
+	})
+	require.NoError(t, err)
+
+	vip, err = state.VirtualIPForService(structs.NewServiceName("api", nil))
+	require.NoError(t, err)
+	require.Equal(t, "240.0.0.1", vip)
+}
diff --git a/agent/consul/state/catalog.go b/agent/consul/state/catalog.go
index f0bf123e39..4aa99a9e5c 100644
--- a/agent/consul/state/catalog.go
+++ b/agent/consul/state/catalog.go
@@ -3,6 +3,7 @@ package state
 import (
 	"errors"
 	"fmt"
+	"net"
 	"reflect"
 	"strings"
 
@@ -27,6 +28,14 @@ const (
 	minUUIDLookupLen = 2
 )
 
+var (
+	// startingVirtualIP is the start of the virtual IP range we assign to services.
+	// The effective CIDR range is startingVirtualIP to (startingVirtualIP + virtualIPMaxOffset).
+	startingVirtualIP = net.IP{240, 0, 0, 0}
+
+	virtualIPMaxOffset = net.IP{15, 255, 255, 254}
+)
+
 func resizeNodeLookupKey(s string) string {
 	l := len(s)
 
@@ -72,6 +81,24 @@ func (s *Snapshot) Checks(node string, entMeta *structs.EnterpriseMeta) (memdb.R
 	})
 }
 
+// ServiceVirtualIPs is used to pull the service virtual IP mappings for use during snapshots.
+func (s *Snapshot) ServiceVirtualIPs() (memdb.ResultIterator, error) {
+	iter, err := s.tx.Get(tableServiceVirtualIPs, indexID)
+	if err != nil {
+		return nil, err
+	}
+	return iter, nil
+}
+
+// FreeVirtualIPs is used to pull the freed virtual IPs for use during snapshots.
+func (s *Snapshot) FreeVirtualIPs() (memdb.ResultIterator, error) {
+	iter, err := s.tx.Get(tableFreeVirtualIPs, indexID)
+	if err != nil {
+		return nil, err
+	}
+	return iter, nil
+}
+
 // Registration is used to make sure a node, service, and check registration is
 // performed within a single transaction to avoid race conditions on state
 // updates.
@@ -79,6 +106,14 @@ func (s *Restore) Registration(idx uint64, req *structs.RegisterRequest) error {
 	return s.store.ensureRegistrationTxn(s.tx, idx, true, req, true)
 }
 
+func (s *Restore) ServiceVirtualIP(req ServiceVirtualIP) error {
+	return s.tx.Insert(tableServiceVirtualIPs, req)
+}
+
+func (s *Restore) FreeVirtualIP(req FreeVirtualIP) error {
+	return s.tx.Insert(tableFreeVirtualIPs, req)
+}
+
 // EnsureRegistration is used to make sure a node, service, and check
 // registration is performed within a single transaction to avoid race
 // conditions on state updates.
@@ -706,11 +741,35 @@ func ensureServiceTxn(tx WriteTxn, idx uint64, node string, preserveIndexes bool
 	if err = checkGatewayWildcardsAndUpdate(tx, idx, svc); err != nil {
 		return fmt.Errorf("failed updating gateway mapping: %s", err)
 	}
+
 	// Update upstream/downstream mappings if it's a connect service
-	if svc.Kind == structs.ServiceKindConnectProxy {
+	if svc.Kind == structs.ServiceKindConnectProxy || svc.Connect.Native {
 		if err = updateMeshTopology(tx, idx, node, svc, existing); err != nil {
 			return fmt.Errorf("failed updating upstream/downstream association")
 		}
+
+		supported, err := virtualIPsSupported(tx, nil)
+		if err != nil {
+			return err
+		}
+
+		// Update the virtual IP for the service
+		if supported {
+			service := svc.Service
+			if svc.Kind == structs.ServiceKindConnectProxy {
+				service = svc.Proxy.DestinationServiceName
+			}
+
+			sn := structs.ServiceName{Name: service, EnterpriseMeta: svc.EnterpriseMeta}
+			vip, err := assignServiceVirtualIP(tx, sn)
+			if err != nil {
+				return fmt.Errorf("failed updating virtual IP: %s", err)
+			}
+			if svc.TaggedAddresses == nil {
+				svc.TaggedAddresses = make(map[string]structs.ServiceAddress)
+			}
+			svc.TaggedAddresses[structs.TaggedAddressVirtualIP] = structs.ServiceAddress{Address: vip, Port: svc.Port}
+		}
 	}
 
 	// Create the service node entry and populate the indexes. Note that
@@ -751,6 +810,120 @@ func ensureServiceTxn(tx WriteTxn, idx uint64, node string, preserveIndexes bool
 	return catalogInsertService(tx, entry)
 }
 
+// assignServiceVirtualIP assigns a virtual IP to the target service and updates
+// the global virtual IP counter if necessary.
+func assignServiceVirtualIP(tx WriteTxn, sn structs.ServiceName) (string, error) {
+	serviceVIP, err := tx.First(tableServiceVirtualIPs, indexID, sn)
+	if err != nil {
+		return "", fmt.Errorf("failed service virtual IP lookup: %s", err)
+	}
+
+	// Service already has a virtual IP assigned, nothing to do.
+	if serviceVIP != nil {
+		sVIP := serviceVIP.(ServiceVirtualIP).IP
+		result, err := addIPOffset(startingVirtualIP, sVIP)
+		if err != nil {
+			return "", err
+		}
+
+		return result.String(), nil
+	}
+
+	// Get the next available virtual IP, drawing from any freed from deleted services
+	// first and then falling back to the global counter if none are available.
+	latestVIP, err := tx.First(tableFreeVirtualIPs, indexCounterOnly, false)
+	if err != nil {
+		return "", fmt.Errorf("failed virtual IP index lookup: %s", err)
+	}
+	if latestVIP == nil {
+		latestVIP, err = tx.First(tableFreeVirtualIPs, indexCounterOnly, true)
+		if err != nil {
+			return "", fmt.Errorf("failed virtual IP index lookup: %s", err)
+		}
+	}
+	if latestVIP != nil {
+		if err := tx.Delete(tableFreeVirtualIPs, latestVIP); err != nil {
+			return "", fmt.Errorf("failed updating freed virtual IP table: %v", err)
+		}
+	}
+
+	var latest FreeVirtualIP
+	if latestVIP == nil {
+		latest = FreeVirtualIP{
+			IP:        net.IPv4zero,
+			IsCounter: true,
+		}
+	} else {
+		latest = latestVIP.(FreeVirtualIP)
+	}
+
+	// Store the next virtual IP from the counter if there aren't any freed IPs to draw from.
+	// Then increment to store the next free virtual IP.
+	newEntry := FreeVirtualIP{
+		IP:        latest.IP,
+		IsCounter: latest.IsCounter,
+	}
+	if latest.IsCounter {
+		newEntry.IP = make(net.IP, len(latest.IP))
+		copy(newEntry.IP, latest.IP)
+		for i := len(newEntry.IP) - 1; i >= 0; i-- {
+			newEntry.IP[i]++
+			if newEntry.IP[i] != 0 {
+				break
+			}
+		}
+
+		// Out of virtual IPs, fail registration.
+		if newEntry.IP.Equal(virtualIPMaxOffset) {
+			return "", fmt.Errorf("cannot allocate any more unique service virtual IPs")
+		}
+
+		if err := tx.Insert(tableFreeVirtualIPs, newEntry); err != nil {
+			return "", fmt.Errorf("failed updating freed virtual IP table: %v", err)
+		}
+	}
+
+	assignedVIP := ServiceVirtualIP{
+		Service: sn,
+		IP:      newEntry.IP,
+	}
+	if err := tx.Insert(tableServiceVirtualIPs, assignedVIP); err != nil {
+		return "", fmt.Errorf("failed inserting service virtual IP entry: %s", err)
+	}
+
+	result, err := addIPOffset(startingVirtualIP, assignedVIP.IP)
+	if err != nil {
+		return "", err
+	}
+	return result.String(), nil
+}
+
+func addIPOffset(a, b net.IP) (net.IP, error) {
+	a4 := a.To4()
+	b4 := b.To4()
+	if a4 == nil || b4 == nil {
+		return nil, errors.New("ip is not ipv4")
+	}
+
+	var raw uint64
+	for i := 0; i < 4; i++ {
+		raw = raw<<8 + uint64(a4[i]) + uint64(b4[i])
+	}
+	return net.IPv4(byte(raw>>24), byte(raw>>16), byte(raw>>8), byte(raw)), nil
+}
+
+func virtualIPsSupported(tx ReadTxn, ws memdb.WatchSet) (bool, error) {
+	_, entry, err := systemMetadataGetTxn(tx, ws, structs.SystemMetadataVirtualIPsEnabled)
+	if err != nil {
+		return false, fmt.Errorf("failed system metadata lookup: %s", err)
+	}
+	if entry == nil {
+		return false, nil
+	}
+
+	return entry.Value != "", nil
+}
+
 // Services returns all services along with a list of associated tags.
 func (s *Store) Services(ws memdb.WatchSet, entMeta *structs.EnterpriseMeta) (uint64, structs.Services, error) {
 	tx := s.db.Txn(false)
@@ -1515,6 +1688,9 @@ func (s *Store) deleteServiceTxn(tx WriteTxn, idx uint64, nodeName, serviceID st
 			if err := cleanupGatewayWildcards(tx, idx, svc); err != nil {
 				return fmt.Errorf("failed to clean up gateway-service associations for %q: %v", name.String(), err)
 			}
+			if err := freeServiceVirtualIP(tx, svc.ServiceName, entMeta); err != nil {
+				return fmt.Errorf("failed to clean up virtual IP for %q: %v", name.String(), err)
+			}
 		}
 	} else {
 		return fmt.Errorf("Could not find any service %s: %s", svc.ServiceName, err)
@@ -1523,6 +1699,40 @@ func (s *Store) deleteServiceTxn(tx WriteTxn, idx uint64, nodeName, serviceID st
 	return nil
 }
 
+// freeServiceVirtualIP is used to free a virtual IP for a service after the last instance
+// is removed.
+func freeServiceVirtualIP(tx WriteTxn, svc string, entMeta *structs.EnterpriseMeta) error {
+	supported, err := virtualIPsSupported(tx, nil)
+	if err != nil {
+		return err
+	}
+	if !supported {
+		return nil
+	}
+
+	sn := structs.NewServiceName(svc, entMeta)
+	serviceVIP, err := tx.First(tableServiceVirtualIPs, indexID, sn)
+	if err != nil {
+		return fmt.Errorf("failed service virtual IP lookup: %s", err)
+	}
+	// Service has no virtual IP assigned, nothing to do.
+	if serviceVIP == nil {
+		return nil
+	}
+
+	// Delete the service virtual IP and add it to the freed IPs list.
+	if err := tx.Delete(tableServiceVirtualIPs, serviceVIP); err != nil {
+		return fmt.Errorf("failed updating freed virtual IP table: %v", err)
+	}
+
+	newEntry := FreeVirtualIP{IP: serviceVIP.(ServiceVirtualIP).IP}
+	if err := tx.Insert(tableFreeVirtualIPs, newEntry); err != nil {
+		return fmt.Errorf("failed updating freed virtual IP table: %v", err)
+	}
+
+	return nil
+}
+
 // EnsureCheck is used to store a check registration in the db.
 func (s *Store) EnsureCheck(idx uint64, hc *structs.HealthCheck) error {
 	tx := s.db.WriteTxn(idx)
@@ -2297,6 +2507,25 @@ func (s *Store) GatewayServices(ws memdb.WatchSet, gateway string, entMeta *stru
 	return lib.MaxUint64(maxIdx, idx), results, nil
 }
 
+func (s *Store) VirtualIPForService(sn structs.ServiceName) (string, error) {
+	tx := s.db.Txn(false)
+	defer tx.Abort()
+
+	vip, err := tx.First(tableServiceVirtualIPs, indexID, sn)
+	if err != nil {
+		return "", fmt.Errorf("failed service virtual IP lookup: %s", err)
+	}
+	if vip == nil {
+		return "", nil
+	}
+
+	result, err := addIPOffset(startingVirtualIP, vip.(ServiceVirtualIP).IP)
+	if err != nil {
+		return "", err
+	}
+	return result.String(), nil
+}
+
 // parseCheckServiceNodes is used to parse through a given set of services,
 // and query for an associated node and a set of checks. This is the inner
 // method used to return a rich set of results from a more simple query.
diff --git a/agent/consul/state/catalog_events_test.go b/agent/consul/state/catalog_events_test.go
index 277dec11c3..6e86171d21 100644
--- a/agent/consul/state/catalog_events_test.go
+++ b/agent/consul/state/catalog_events_test.go
@@ -73,6 +73,11 @@ func TestServiceHealthSnapshot(t *testing.T) {
 func TestServiceHealthSnapshot_ConnectTopic(t *testing.T) {
 	store := NewStateStore(nil)
 
+	require.NoError(t, store.SystemMetadataSet(0, &structs.SystemMetadataEntry{
+		Key:   structs.SystemMetadataVirtualIPsEnabled,
+		Value: "true",
+	}))
+
 	counter := newIndexCounter()
 	err := store.EnsureRegistration(counter.Next(), testServiceRegistration(t, "db"))
 	require.NoError(t, err)
@@ -1574,6 +1579,10 @@ func TestServiceHealthEventsFromChanges(t *testing.T) {
 
 func (tc eventsTestCase) run(t *testing.T) {
 	s := NewStateStore(nil)
+	require.NoError(t, s.SystemMetadataSet(0, &structs.SystemMetadataEntry{
+		Key:   structs.SystemMetadataVirtualIPsEnabled,
+		Value: "true",
+	}))
 
 	setupIndex := uint64(10)
 	mutateIndex := uint64(100)
@@ -1936,7 +1945,14 @@ func evServiceUnchanged(e *stream.Event) error {
 // evConnectNative option converts the base event to represent a connect-native
 // service instance.
 func evConnectNative(e *stream.Event) error {
-	getPayloadCheckServiceNode(e.Payload).Service.Connect.Native = true
+	csn := getPayloadCheckServiceNode(e.Payload)
+	csn.Service.Connect.Native = true
+	csn.Service.TaggedAddresses = map[string]structs.ServiceAddress{
+		structs.TaggedAddressVirtualIP: {
+			Address: "240.0.0.1",
+			Port:    csn.Service.Port,
+		},
+	}
 	return nil
 }
 
@@ -1969,6 +1985,13 @@ func evSidecar(e *stream.Event) error {
 	csn.Service.Proxy.DestinationServiceName = svc
 	csn.Service.Proxy.DestinationServiceID = svc
 
+	csn.Service.TaggedAddresses = map[string]structs.ServiceAddress{
+		structs.TaggedAddressVirtualIP: {
+			Address: "240.0.0.1",
+			Port:    csn.Service.Port,
+		},
+	}
+
 	// Convert the check to point to the right ID now. This isn't totally
 	// realistic - sidecars should have alias checks etc but this is good enough
 	// to test this code path.
@@ -1990,7 +2013,12 @@ func evSidecar(e *stream.Event) error {
 // amount to simulate a service change. Can be used with evSidecar since it's a
 // relative change (+10).
 func evMutatePort(e *stream.Event) error {
-	getPayloadCheckServiceNode(e.Payload).Service.Port += 10
+	csn := getPayloadCheckServiceNode(e.Payload)
+	csn.Service.Port += 10
+	if addr, ok := csn.Service.TaggedAddresses[structs.TaggedAddressVirtualIP]; ok {
+		addr.Port = csn.Service.Port
+		csn.Service.TaggedAddresses[structs.TaggedAddressVirtualIP] = addr
+	}
 	return nil
 }
 
@@ -2067,6 +2095,10 @@ func evRenameService(e *stream.Event) error {
 	// We don't need to update our own details, only the name of the destination
 	csn.Service.Proxy.DestinationServiceName += "_changed"
 
+	taggedAddr := csn.Service.TaggedAddresses[structs.TaggedAddressVirtualIP]
+	taggedAddr.Address = "240.0.0.2"
+	csn.Service.TaggedAddresses[structs.TaggedAddressVirtualIP] = taggedAddr
+
 	if e.Topic == topicServiceHealthConnect {
 		payload := e.Payload.(EventPayloadCheckServiceNode)
 		payload.overrideKey = csn.Service.Proxy.DestinationServiceName
diff --git a/agent/consul/state/catalog_oss_test.go b/agent/consul/state/catalog_oss_test.go
index 2813a6ee54..04162072bc 100644
--- a/agent/consul/state/catalog_oss_test.go
+++ b/agent/consul/state/catalog_oss_test.go
@@ -4,6 +4,8 @@
 package state
 
 import (
+	"net"
+
 	"github.com/hashicorp/consul/agent/structs"
 	"github.com/hashicorp/consul/types"
 )
@@ -386,3 +388,27 @@ func testIndexerTableServices() map[string]indexerTestCase {
 		},
 	}
 }
+
+func testIndexerTableServiceVirtualIPs() map[string]indexerTestCase {
+	obj := ServiceVirtualIP{
+		Service: structs.ServiceName{
+			Name: "foo",
+		},
+		IP: net.ParseIP("127.0.0.1"),
+	}
+
+	return map[string]indexerTestCase{
+		indexID: {
+			read: indexValue{
+				source: structs.ServiceName{
+					Name: "foo",
+				},
+				expected: []byte("foo\x00"),
+			},
+			write: indexValue{
+				source:   obj,
+				expected: []byte("foo\x00"),
+			},
+		},
+	}
+}
diff --git a/agent/consul/state/catalog_schema.go b/agent/consul/state/catalog_schema.go
index 808c898341..b67bf50490 100644
--- a/agent/consul/state/catalog_schema.go
+++ b/agent/consul/state/catalog_schema.go
@@ -2,6 +2,7 @@ package state
 
 import (
 	"fmt"
+	"net"
 	"reflect"
 	"strings"
 
@@ -11,11 +12,13 @@ import (
 )
 
 const (
-	tableNodes           = "nodes"
-	tableServices        = "services"
-	tableChecks          = "checks"
-	tableGatewayServices = "gateway-services"
-	tableMeshTopology    = "mesh-topology"
+	tableNodes             = "nodes"
+	tableServices          = "services"
+	tableChecks            = "checks"
+	tableGatewayServices   = "gateway-services"
+	tableMeshTopology      = "mesh-topology"
+	tableServiceVirtualIPs = "service-virtual-ips"
+	tableFreeVirtualIPs    = "free-virtual-ips"
 
 	indexID          = "id"
 	indexService     = "service"
@@ -30,6 +33,7 @@ const (
 	indexGateway     = "gateway"
 	indexUUID        = "uuid"
 	indexMeta        = "meta"
+	indexCounterOnly = "counter"
 )
 
 // nodesTableSchema returns a new table schema used for storing struct.Node.
@@ -598,3 +602,62 @@ func (q NodeCheckQuery) NamespaceOrDefault() string {
 func (q NodeCheckQuery) PartitionOrDefault() string {
 	return q.EnterpriseMeta.PartitionOrDefault()
 }
+
+// ServiceVirtualIP is used to store a virtual IP associated with a service.
+// It is also used to store assigned virtual IPs when a snapshot is created.
+type ServiceVirtualIP struct {
+	Service structs.ServiceName
+	IP      net.IP
+}
+
+// FreeVirtualIP is used to store a virtual IP freed up by a service deregistration.
+// It is also used to store free virtual IPs when a snapshot is created.
+type FreeVirtualIP struct {
+	IP        net.IP
+	IsCounter bool
+}
+
+func serviceVirtualIPTableSchema() *memdb.TableSchema {
+	return &memdb.TableSchema{
+		Name: tableServiceVirtualIPs,
+		Indexes: map[string]*memdb.IndexSchema{
+			indexID: {
+				Name:         indexID,
+				AllowMissing: false,
+				Unique:       true,
+				Indexer: &ServiceNameIndex{
+					Field: "Service",
+				},
+			},
+		},
+	}
+}
+
+func freeVirtualIPTableSchema() *memdb.TableSchema {
+	return &memdb.TableSchema{
+		Name: tableFreeVirtualIPs,
+		Indexes: map[string]*memdb.IndexSchema{
+			indexID: {
+				Name:         indexID,
+				AllowMissing: false,
+				Unique:       true,
+				Indexer: &memdb.StringFieldIndex{
+					Field: "IP",
+				},
+			},
+			indexCounterOnly: {
+				Name:         indexCounterOnly,
+				AllowMissing: false,
+				Unique:       false,
+				Indexer: &memdb.ConditionalIndex{
+					Conditional: func(obj interface{}) (bool, error) {
+						if vip, ok := obj.(FreeVirtualIP); ok {
+							return vip.IsCounter, nil
+						}
+						return false, fmt.Errorf("object is not a virtual IP entry")
+					},
+				},
+			},
+		},
+	}
+}
diff --git a/agent/consul/state/catalog_test.go b/agent/consul/state/catalog_test.go
index 75d37c5f75..c95989b809 100644
--- a/agent/consul/state/catalog_test.go
+++ b/agent/consul/state/catalog_test.go
@@ -1548,6 +1548,142 @@ func TestStateStore_EnsureService_connectProxy(t *testing.T) {
 	assert.Equal(&expect1, out.Services["connect-proxy"])
 }
 
+func TestStateStore_EnsureService_virtualIps(t *testing.T) {
+	assert := assert.New(t)
+	s := testStateStore(t)
+	require.NoError(t, s.SystemMetadataSet(0, &structs.SystemMetadataEntry{
+		Key:   structs.SystemMetadataVirtualIPsEnabled,
+		Value: "true",
+	}))
+
+	// Create the service registration.
+	entMeta := structs.DefaultEnterpriseMetaInDefaultPartition()
+	ns1 := &structs.NodeService{
+		ID:      "foo",
+		Service: "foo",
+		Address: "1.1.1.1",
+		Port:    1111,
+		Weights: &structs.Weights{
+			Passing: 1,
+			Warning: 1,
+		},
+		Connect:        structs.ServiceConnect{Native: true},
+		EnterpriseMeta: *entMeta,
+	}
+
+	// Service successfully registers into the state store.
+	testRegisterNode(t, s, 0, "node1")
+	require.NoError(t, s.EnsureService(10, "node1", ns1))
+
+	// Make sure there's a virtual IP for the foo service.
+	vip, err := s.VirtualIPForService(structs.ServiceName{Name: "foo"})
+	require.NoError(t, err)
+	assert.Equal("240.0.0.1", vip)
+
+	// Retrieve and verify
+	_, out, err := s.NodeServices(nil, "node1", nil)
+	require.NoError(t, err)
+	assert.NotNil(out)
+	assert.Len(out.Services, 1)
+
+	taggedAddress := out.Services["foo"].TaggedAddresses[structs.TaggedAddressVirtualIP]
+	assert.Equal(vip, taggedAddress.Address)
+	assert.Equal(ns1.Port, taggedAddress.Port)
+
+	// Create the service registration.
+	ns2 := &structs.NodeService{
+		Kind:    structs.ServiceKindConnectProxy,
+		ID:      "redis-proxy",
+		Service: "redis-proxy",
+		Address: "2.2.2.2",
+		Port:    2222,
+		Weights: &structs.Weights{
+			Passing: 1,
+			Warning: 1,
+		},
+		Proxy:          structs.ConnectProxyConfig{DestinationServiceName: "redis"},
+		EnterpriseMeta: *entMeta,
+	}
+	require.NoError(t, s.EnsureService(11, "node1", ns2))
+
+	// Make sure the virtual IP has been incremented for the redis service.
+	vip, err = s.VirtualIPForService(structs.ServiceName{Name: "redis"})
+	require.NoError(t, err)
+	assert.Equal("240.0.0.2", vip)
+
+	// Retrieve and verify
+	_, out, err = s.NodeServices(nil, "node1", nil)
+	assert.Nil(err)
+	assert.NotNil(out)
+	assert.Len(out.Services, 2)
+
+	taggedAddress = out.Services["redis-proxy"].TaggedAddresses[structs.TaggedAddressVirtualIP]
+	assert.Equal(vip, taggedAddress.Address)
+	assert.Equal(ns2.Port, taggedAddress.Port)
+
+	// Delete the first service and make sure it no longer has a virtual IP assigned.
+	require.NoError(t, s.DeleteService(12, "node1", "foo", entMeta))
+	vip, err = s.VirtualIPForService(structs.ServiceName{Name: "connect-proxy"})
+	require.NoError(t, err)
+	assert.Equal("", vip)
+
+	// Register another instance of redis-proxy and make sure the virtual IP is unchanged.
+	ns3 := &structs.NodeService{
+		Kind:    structs.ServiceKindConnectProxy,
+		ID:      "redis-proxy2",
+		Service: "redis-proxy",
+		Address: "3.3.3.3",
+		Port:    3333,
+		Weights: &structs.Weights{
+			Passing: 1,
+			Warning: 1,
+		},
+		Proxy:          structs.ConnectProxyConfig{DestinationServiceName: "redis"},
+		EnterpriseMeta: *entMeta,
+	}
+	require.NoError(t, s.EnsureService(13, "node1", ns3))
+
+	// Make sure the virtual IP is unchanged for the redis service.
+	vip, err = s.VirtualIPForService(structs.ServiceName{Name: "redis"})
+	require.NoError(t, err)
+	assert.Equal("240.0.0.2", vip)
+
+	// Make sure the new instance has the same virtual IP.
+	_, out, err = s.NodeServices(nil, "node1", nil)
+	require.NoError(t, err)
+	taggedAddress = out.Services["redis-proxy2"].TaggedAddresses[structs.TaggedAddressVirtualIP]
+	assert.Equal(vip, taggedAddress.Address)
+	assert.Equal(ns3.Port, taggedAddress.Port)
+
+	// Register another service to take its virtual IP.
+	ns4 := &structs.NodeService{
+		Kind:    structs.ServiceKindConnectProxy,
+		ID:      "web-proxy",
+		Service: "web-proxy",
+		Address: "4.4.4.4",
+		Port:    4444,
+		Weights: &structs.Weights{
+			Passing: 1,
+			Warning: 1,
+		},
+		Proxy:          structs.ConnectProxyConfig{DestinationServiceName: "web"},
+		EnterpriseMeta: *entMeta,
+	}
+	require.NoError(t, s.EnsureService(14, "node1", ns4))
+
+	// Make sure the virtual IP has allocated from the previously freed service.
+	vip, err = s.VirtualIPForService(structs.ServiceName{Name: "web"})
+	require.NoError(t, err)
+	assert.Equal("240.0.0.1", vip)
+
+	// Retrieve and verify
+	_, out, err = s.NodeServices(nil, "node1", nil)
+	require.NoError(t, err)
+	taggedAddress = out.Services["web-proxy"].TaggedAddresses[structs.TaggedAddressVirtualIP]
+	assert.Equal(vip, taggedAddress.Address)
+	assert.Equal(ns4.Port, taggedAddress.Port)
+}
+
 func TestStateStore_Services(t *testing.T) {
 	s := testStateStore(t)
 
diff --git a/agent/consul/state/schema.go b/agent/consul/state/schema.go
index bca4eec01b..4005469fdd 100644
--- a/agent/consul/state/schema.go
+++ b/agent/consul/state/schema.go
@@ -32,12 +32,14 @@ func newDBSchema() *memdb.DBSchema {
 		preparedQueriesTableSchema,
 		rolesTableSchema,
 		servicesTableSchema,
+		serviceVirtualIPTableSchema,
 		sessionChecksTableSchema,
 		sessionsTableSchema,
 		systemMetadataTableSchema,
 		tokensTableSchema,
 		tombstonesTableSchema,
 		usageTableSchema,
+		freeVirtualIPTableSchema,
 	)
 	withEnterpriseSchema(db)
 	return db
diff --git a/agent/consul/state/schema_test.go b/agent/consul/state/schema_test.go
index 0810a0c29f..b83491587d 100644
--- a/agent/consul/state/schema_test.go
+++ b/agent/consul/state/schema_test.go
@@ -43,12 +43,13 @@ func TestNewDBSchema_Indexers(t *testing.T) {
 		tableACLRoles:        testIndexerTableACLRoles,
 		tableACLTokens:       testIndexerTableACLTokens,
 		// catalog
-		tableChecks:          testIndexerTableChecks,
-		tableServices:        testIndexerTableServices,
-		tableNodes:           testIndexerTableNodes,
-		tableCoordinates:     testIndexerTableCoordinates,
-		tableMeshTopology:    testIndexerTableMeshTopology,
-		tableGatewayServices: testIndexerTableGatewayServices,
+		tableChecks:            testIndexerTableChecks,
+		tableServices:          testIndexerTableServices,
+		tableNodes:             testIndexerTableNodes,
+		tableCoordinates:       testIndexerTableCoordinates,
+		tableMeshTopology:      testIndexerTableMeshTopology,
+		tableGatewayServices:   testIndexerTableGatewayServices,
+		tableServiceVirtualIPs: testIndexerTableServiceVirtualIPs,
 		// KV
 		tableKVs:        testIndexerTableKVs,
 		tableTombstones: testIndexerTableTombstones,
diff --git a/agent/consul/system_metadata_test.go b/agent/consul/system_metadata_test.go
index c8edb29b7d..30f57defd5 100644
--- a/agent/consul/system_metadata_test.go
+++ b/agent/consul/system_metadata_test.go
@@ -32,7 +32,7 @@ func TestLeader_SystemMetadata_CRUD(t *testing.T) {
 
 	state := srv.fsm.State()
 
-	// Initially empty
+	// Initially has no entries
 	_, entries, err := state.SystemMetadataList(nil)
 	require.NoError(t, err)
 	require.Len(t, entries, 0)
diff --git a/agent/local/state.go b/agent/local/state.go
index b54037d50a..a729bf06c8 100644
--- a/agent/local/state.go
+++ b/agent/local/state.go
@@ -1082,6 +1082,19 @@ func (l *State) updateSyncState() error {
 			ls.Service.Tags = make([]string, len(rs.Tags))
 			copy(ls.Service.Tags, rs.Tags)
 		}
+
+		// Merge any tagged addresses with the consul- prefix (set by the server)
+		// back into the local state.
+		if !reflect.DeepEqual(ls.Service.TaggedAddresses, rs.TaggedAddresses) {
+			if ls.Service.TaggedAddresses == nil {
+				ls.Service.TaggedAddresses = make(map[string]structs.ServiceAddress)
+			}
+			for k, v := range rs.TaggedAddresses {
+				if strings.HasPrefix(k, structs.MetaKeyReservedPrefix) {
+					ls.Service.TaggedAddresses[k] = v
+				}
+			}
+		}
 		ls.InSync = ls.Service.IsSame(rs)
 	}
 
diff --git a/agent/local/state_test.go b/agent/local/state_test.go
index 46d0d6e6f3..d955e38a2b 100644
--- a/agent/local/state_test.go
+++ b/agent/local/state_test.go
@@ -374,8 +374,17 @@ func TestAgentAntiEntropy_Services_ConnectProxy(t *testing.T) {
 	assert.Len(services.NodeServices.Services, 5)
 
 	// All the services should match
+	vips := make(map[string]struct{})
+	srv1.TaggedAddresses = nil
+	srv2.TaggedAddresses = nil
 	for id, serv := range services.NodeServices.Services {
 		serv.CreateIndex, serv.ModifyIndex = 0, 0
+		if serv.TaggedAddresses != nil {
+			serviceVIP := serv.TaggedAddresses[structs.TaggedAddressVirtualIP].Address
+			assert.NotEmpty(serviceVIP)
+			vips[serviceVIP] = struct{}{}
+		}
+		serv.TaggedAddresses = nil
 		switch id {
 		case "mysql-proxy":
 			assert.Equal(srv1, serv)
@@ -392,6 +401,7 @@ func TestAgentAntiEntropy_Services_ConnectProxy(t *testing.T) {
 		}
 	}
 
+	assert.Len(vips, 4)
 	assert.Nil(servicesInSync(a.State, 4, structs.DefaultEnterpriseMetaInDefaultPartition()))
 
 	// Remove one of the services
diff --git a/agent/structs/structs.go b/agent/structs/structs.go
index 17270b986c..86c724b6a7 100644
--- a/agent/structs/structs.go
+++ b/agent/structs/structs.go
@@ -70,6 +70,8 @@ const (
 	ChunkingStateType                           = 29
 	FederationStateRequestType                  = 30
 	SystemMetadataRequestType                   = 31
+	ServiceVirtualIPRequestType                 = 32
+	FreeVirtualIPRequestType                    = 33
 )
 
 // if a new request type is added above it must be
@@ -110,6 +112,8 @@ var requestTypeStrings = map[MessageType]string{
 	ChunkingStateType:               "ChunkingState",
 	FederationStateRequestType:      "FederationState",
 	SystemMetadataRequestType:       "SystemMetadata",
+	ServiceVirtualIPRequestType:     "ServiceVirtualIP",
+	FreeVirtualIPRequestType:        "FreeVirtualIP",
 }
 
 const (
@@ -127,7 +131,7 @@ const (
 	ServiceMaintPrefix = "_service_maintenance:"
 
 	// The meta key prefix reserved for Consul's internal use
-	metaKeyReservedPrefix = "consul-"
+	MetaKeyReservedPrefix = "consul-"
 
 	// metaMaxKeyPairs is maximum number of metadata key pairs allowed to be registered
 	metaMaxKeyPairs = 64
@@ -148,6 +152,9 @@ const (
 	// MetaExternalSource is the metadata key used when a resource is managed by a source outside Consul like nomad/k8s
 	MetaExternalSource = "external-source"
 
+	// TaggedAddressVirtualIP is the key used to store tagged virtual IPs generated by Consul.
+	TaggedAddressVirtualIP = "consul-virtual"
+
 	// MaxLockDelay provides a maximum LockDelay value for
 	// a session. Any value above this will not be respected.
 	MaxLockDelay = 60 * time.Second
@@ -847,9 +854,9 @@ func validateMetaPair(key, value string, allowConsulPrefix bool, allowedConsulKe
 	if len(key) > metaKeyMaxLength {
 		return fmt.Errorf("Key is too long (limit: %d characters)", metaKeyMaxLength)
 	}
-	if strings.HasPrefix(key, metaKeyReservedPrefix) {
+	if strings.HasPrefix(key, MetaKeyReservedPrefix) {
 		if _, ok := allowedConsulKeys[key]; !allowConsulPrefix && !ok {
-			return fmt.Errorf("Key prefix '%s' is reserved for internal use", metaKeyReservedPrefix)
+			return fmt.Errorf("Key prefix '%s' is reserved for internal use", MetaKeyReservedPrefix)
 		}
 	}
 	if len(value) > metaValueMaxLength {
diff --git a/agent/structs/structs_test.go b/agent/structs/structs_test.go
index 29d7692efa..53f35bde38 100644
--- a/agent/structs/structs_test.go
+++ b/agent/structs/structs_test.go
@@ -1561,7 +1561,7 @@ func TestStructs_ValidateServiceAndNodeMetadata(t *testing.T) {
 		},
 		"reserved key prefix denied": {
 			map[string]string{
-				metaKeyReservedPrefix + "key": "value1",
+				MetaKeyReservedPrefix + "key": "value1",
 			},
 			false,
 			"reserved for internal use",
@@ -1570,7 +1570,7 @@ func TestStructs_ValidateServiceAndNodeMetadata(t *testing.T) {
 		},
 		"reserved key prefix allowed": {
 			map[string]string{
-				metaKeyReservedPrefix + "key": "value1",
+				MetaKeyReservedPrefix + "key": "value1",
 			},
 			true,
 			"",
@@ -1640,13 +1640,13 @@ func TestStructs_validateMetaPair(t *testing.T) {
 		// key too long
 		{longKey, "value", "Key is too long", false, nil},
 		// reserved prefix
-		{metaKeyReservedPrefix + "key", "value", "reserved for internal use", false, nil},
+		{MetaKeyReservedPrefix + "key", "value", "reserved for internal use", false, nil},
 		// reserved prefix, allowed
-		{metaKeyReservedPrefix + "key", "value", "", true, nil},
+		{MetaKeyReservedPrefix + "key", "value", "", true, nil},
 		// reserved prefix, not allowed via an allowlist
-		{metaKeyReservedPrefix + "bad", "value", "reserved for internal use", false, map[string]struct{}{metaKeyReservedPrefix + "good": {}}},
+		{MetaKeyReservedPrefix + "bad", "value", "reserved for internal use", false, map[string]struct{}{MetaKeyReservedPrefix + "good": {}}},
 		// reserved prefix, allowed via an allowlist
-		{metaKeyReservedPrefix + "good", "value", "", true, map[string]struct{}{metaKeyReservedPrefix + "good": {}}},
+		{MetaKeyReservedPrefix + "good", "value", "", true, map[string]struct{}{MetaKeyReservedPrefix + "good": {}}},
 		// value too long
 		{"key", longValue, "Value is too long", false, nil},
 	}
diff --git a/agent/structs/system_metadata.go b/agent/structs/system_metadata.go
index 7243d5fb0c..dd90ba22cb 100644
--- a/agent/structs/system_metadata.go
+++ b/agent/structs/system_metadata.go
@@ -28,6 +28,7 @@ const (
 	SystemMetadataIntentionFormatKey         = "intention-format"
 	SystemMetadataIntentionFormatConfigValue = "config-entry"
 	SystemMetadataIntentionFormatLegacyValue = "legacy"
+	SystemMetadataVirtualIPsEnabled          = "virtual-ips"
 )
 
 type SystemMetadataEntry struct {