diff --git a/go-controller/pkg/allocator/pod/pod_annotation_test.go b/go-controller/pkg/allocator/pod/pod_annotation_test.go
index 8929cd1efd..5dfcd58e0f 100644
--- a/go-controller/pkg/allocator/pod/pod_annotation_test.go
+++ b/go-controller/pkg/allocator/pod/pod_annotation_test.go
@@ -183,6 +183,13 @@ func Test_allocatePodAnnotationWithRollback(t *testing.T) {
 				MAC:      util.IPAddrToHWAddr(ovntest.MustParseIPNets("192.168.0.3/24")[0].IP),
 				Gateways: []net.IP{ovntest.MustParseIP("192.168.0.1").To4()},
 				Routes: []util.PodRoute{
+					{
+						Dest: &net.IPNet{
+							IP:   ovntest.MustParseIP("169.254.169.5"),
+							Mask: net.CIDRMask(32, 32),
+						},
+						NextHop: ovntest.MustParseIP("192.168.0.1").To4(),
+					},
 					{
 						Dest:    ovntest.MustParseIPNet("100.64.0.0/16"),
 						NextHop: ovntest.MustParseIP("192.168.0.1").To4(),
@@ -264,6 +271,13 @@ func Test_allocatePodAnnotationWithRollback(t *testing.T) {
 				MAC:      util.IPAddrToHWAddr(ovntest.MustParseIPNets("192.168.0.4/24")[0].IP),
 				Gateways: []net.IP{ovntest.MustParseIP("192.168.0.1").To4()},
 				Routes: []util.PodRoute{
+					{
+						Dest: &net.IPNet{
+							IP:   ovntest.MustParseIP("169.254.169.5"),
+							Mask: net.CIDRMask(32, 32),
+						},
+						NextHop: ovntest.MustParseIP("192.168.0.1").To4(),
+					},
 					{
 						Dest:    ovntest.MustParseIPNet("100.64.0.0/16"),
 						NextHop: ovntest.MustParseIP("192.168.0.1").To4(),
@@ -293,6 +307,13 @@ func Test_allocatePodAnnotationWithRollback(t *testing.T) {
 				MAC:      util.IPAddrToHWAddr(ovntest.MustParseIPNets("192.168.0.4/24")[0].IP),
 				Gateways: []net.IP{ovntest.MustParseIP("192.168.0.1").To4()},
 				Routes: []util.PodRoute{
+					{
+						Dest: &net.IPNet{
+							IP:   ovntest.MustParseIP("169.254.169.5"),
+							Mask: net.CIDRMask(32, 32),
+						},
+						NextHop: ovntest.MustParseIP("192.168.0.1").To4(),
+					},
 					{
 						Dest:    ovntest.MustParseIPNet("100.64.0.0/16"),
 						NextHop: ovntest.MustParseIP("192.168.0.1").To4(),
@@ -321,6 +342,13 @@ func Test_allocatePodAnnotationWithRollback(t *testing.T) {
 				MAC:      util.IPAddrToHWAddr(ovntest.MustParseIPNets("192.168.0.3/24")[0].IP),
 				Gateways: []net.IP{ovntest.MustParseIP("192.168.0.1").To4()},
 				Routes: []util.PodRoute{
+					{
+						Dest: &net.IPNet{
+							IP:   ovntest.MustParseIP("169.254.169.5"),
+							Mask: net.CIDRMask(32, 32),
+						},
+						NextHop: ovntest.MustParseIP("192.168.0.1").To4(),
+					},
 					{
 						Dest:    ovntest.MustParseIPNet("100.64.0.0/16"),
 						NextHop: ovntest.MustParseIP("192.168.0.1").To4(),
@@ -377,6 +405,13 @@ func Test_allocatePodAnnotationWithRollback(t *testing.T) {
 				MAC:      requestedMACParsed,
 				Gateways: []net.IP{ovntest.MustParseIP("192.168.0.1").To4()},
 				Routes: []util.PodRoute{
+					{
+						Dest: &net.IPNet{
+							IP:   ovntest.MustParseIP("169.254.169.5"),
+							Mask: net.CIDRMask(32, 32),
+						},
+						NextHop: ovntest.MustParseIP("192.168.0.1").To4(),
+					},
 					{
 						Dest:    ovntest.MustParseIPNet("100.64.0.0/16"),
 						NextHop: ovntest.MustParseIP("192.168.0.1").To4(),
diff --git a/go-controller/pkg/ovn/pods_test.go b/go-controller/pkg/ovn/pods_test.go
index 6246bde376..2409d71cba 100644
--- a/go-controller/pkg/ovn/pods_test.go
+++ b/go-controller/pkg/ovn/pods_test.go
@@ -250,6 +250,13 @@ func newTPod(nodeName, nodeSubnet, nodeMgtIP, nodeGWIP, podName, podIPs, podMAC,
 				routeSources = append(routeSources, sc)
 			}
 		}
+		hairpinMasqueradeIP := config.Gateway.MasqueradeIPs.V4OVNServiceHairpinMasqueradeIP.String()
+		mask := 32
+		if isIPv6 {
+			hairpinMasqueradeIP = config.Gateway.MasqueradeIPs.V6OVNServiceHairpinMasqueradeIP.String()
+			mask = 128
+		}
+		routeSources = append(routeSources, ovntest.MustParseIPNet(fmt.Sprintf("%s/%d", hairpinMasqueradeIP, mask)))
 		joinNet := config.Gateway.V4JoinSubnet
 		if isIPv6 {
 			joinNet = config.Gateway.V6JoinSubnet
diff --git a/go-controller/pkg/util/pod_annotation.go b/go-controller/pkg/util/pod_annotation.go
index a396942645..91caa23070 100644
--- a/go-controller/pkg/util/pod_annotation.go
+++ b/go-controller/pkg/util/pod_annotation.go
@@ -441,6 +441,33 @@ func joinSubnetToRoute(isIPv6 bool, gatewayIP net.IP) PodRoute {
 	}
 }
 
+func serviceCIDRToRoute(isIPv6 bool, gatewayIP net.IP) []PodRoute {
+	var podRoutes []PodRoute
+	for _, serviceSubnet := range config.Kubernetes.ServiceCIDRs {
+		if isIPv6 == utilnet.IsIPv6CIDR(serviceSubnet) {
+			podRoutes = append(podRoutes, PodRoute{
+				Dest:    serviceSubnet,
+				NextHop: gatewayIP,
+			})
+		}
+	}
+	return podRoutes
+}
+
+func hairpinMasqueradeIPToRoute(isIPv6 bool, gatewayIP net.IP) PodRoute {
+	ip := config.Gateway.MasqueradeIPs.V4OVNServiceHairpinMasqueradeIP
+	if isIPv6 {
+		ip = config.Gateway.MasqueradeIPs.V6OVNServiceHairpinMasqueradeIP
+	}
+	return PodRoute{
+		Dest: &net.IPNet{
+			IP:   ip,
+			Mask: GetIPFullMask(ip),
+		},
+		NextHop: gatewayIP,
+	}
+}
+
 // addRoutesGatewayIP updates the provided pod annotation for the provided pod
 // with the gateways derived from the allocated IPs
 func AddRoutesGatewayIP(
@@ -523,15 +550,9 @@ func AddRoutesGatewayIP(
 		}
 
 		// Ensure default service network traffic always goes to OVN
-		for _, serviceSubnet := range config.Kubernetes.ServiceCIDRs {
-			if isIPv6 == utilnet.IsIPv6CIDR(serviceSubnet) {
-				podAnnotation.Routes = append(podAnnotation.Routes, PodRoute{
-					Dest:    serviceSubnet,
-					NextHop: gatewayIPnet.IP,
-				})
-			}
-		}
-
+		podAnnotation.Routes = append(podAnnotation.Routes, serviceCIDRToRoute(isIPv6, gatewayIPnet.IP)...)
+		// Ensure service hairpin masquerade traffic always goes to OVN
+		podAnnotation.Routes = append(podAnnotation.Routes, hairpinMasqueradeIPToRoute(isIPv6, gatewayIPnet.IP))
 		otherDefaultRoute := otherDefaultRouteV4
 		if isIPv6 {
 			otherDefaultRoute = otherDefaultRouteV6