diff --git a/go-controller/pkg/clustermanager/secondary_network_cluster_manager.go b/go-controller/pkg/clustermanager/secondary_network_cluster_manager.go
index 4ea1d920547..56d3c52a4f7 100644
--- a/go-controller/pkg/clustermanager/secondary_network_cluster_manager.go
+++ b/go-controller/pkg/clustermanager/secondary_network_cluster_manager.go
@@ -92,8 +92,8 @@ func (sncm *secondaryNetworkClusterManager) Stop() {
 }
 
 // NewNetworkController implements the networkAttachDefController.NetworkControllerManager
-// interface function.  This function is called by the net-attach-def controller when
-// a layer2 or layer3 secondary network is created.  Layer2 type is not handled here.
+// interface function. This function is called by the net-attach-def controller when
+// a secondary network is created.
 func (sncm *secondaryNetworkClusterManager) NewNetworkController(nInfo util.NetInfo) (nad.NetworkController, error) {
 	if !sncm.isTopologyManaged(nInfo) {
 		return nil, nad.ErrNetworkControllerTopologyNotManaged
@@ -113,8 +113,15 @@ func (sncm *secondaryNetworkClusterManager) NewNetworkController(nInfo util.NetI
 func (sncm *secondaryNetworkClusterManager) isTopologyManaged(nInfo util.NetInfo) bool {
 	switch nInfo.TopologyType() {
 	case ovntypes.Layer3Topology:
+		// we need to allocate subnets to each node regardless of configuration
 		return true
+	case ovntypes.Layer2Topology:
+		// for IC, pod IPs and tunnel IDs need to be allocated
+		// in non IC config, this is done from ovnkube-master network controller
+		return config.OVNKubernetesFeature.EnableInterconnect
 	case ovntypes.LocalnetTopology:
+		// for IC, pod IPs need to be allocated
+		// in non IC config, this is done from ovnkube-master network controller
 		return config.OVNKubernetesFeature.EnableInterconnect && len(nInfo.Subnets()) > 0
 	}
 	return false
diff --git a/go-controller/pkg/clustermanager/secondary_network_unit_test.go b/go-controller/pkg/clustermanager/secondary_network_unit_test.go
index 7bfda11e479..2b90c401c7d 100644
--- a/go-controller/pkg/clustermanager/secondary_network_unit_test.go
+++ b/go-controller/pkg/clustermanager/secondary_network_unit_test.go
@@ -147,6 +147,8 @@ var _ = ginkgo.Describe("Secondary Layer3 Cluster Controller Manager", func() {
 				gomega.Expect(err).NotTo(gomega.HaveOccurred())
 				config.Kubernetes.HostNetworkNamespace = ""
 
+				config.OVNKubernetesFeature.EnableMultiNetwork = true
+				config.OVNKubernetesFeature.EnableInterconnect = true
 				f, err = factory.NewClusterManagerWatchFactory(fakeClient)
 				gomega.Expect(err).NotTo(gomega.HaveOccurred())
 				err = f.Start()
@@ -156,10 +158,20 @@ var _ = ginkgo.Describe("Secondary Layer3 Cluster Controller Manager", func() {
 				gomega.Expect(err).NotTo(gomega.HaveOccurred())
 				netInfo, err := util.NewNetInfo(&ovncnitypes.NetConf{NetConf: types.NetConf{Name: "blue"}, Topology: ovntypes.Layer2Topology})
 				gomega.Expect(err).NotTo(gomega.HaveOccurred())
+
+				config.OVNKubernetesFeature.EnableInterconnect = false
 				nc, err := sncm.NewNetworkController(netInfo)
 				gomega.Expect(err).To(gomega.Equal(nad.ErrNetworkControllerTopologyNotManaged))
 				gomega.Expect(nc).To(gomega.BeNil())
 
+				config.OVNKubernetesFeature.EnableInterconnect = true
+				nc, err = sncm.NewNetworkController(netInfo)
+				gomega.Expect(err).NotTo(gomega.HaveOccurred())
+				gomega.Expect(nc).NotTo(gomega.BeNil())
+
+				err = nc.Start(ctx.Context)
+				gomega.Expect(err).NotTo(gomega.HaveOccurred())
+
 				return nil
 			}