diff --git a/policy/bro.init b/policy/bro.init
index 17607a7113..8be0ab754a 100644
--- a/policy/bro.init
+++ b/policy/bro.init
@@ -81,10 +81,14 @@ type endpoint_stats: record {
 
 type AnalyzerID: count;
 
-type tunnel_parent_t: record {
-	cid: conn_id;
-	tunnel_type: tunneltype_t;
-};
+module Tunnel;
+export {
+	type parent_t: record {
+		cid: conn_id;
+		tunnel_type: tunneltype_t;
+	};
+} # end export
+module GLOBAL;
 
 type connection: record {
 	id: conn_id;
@@ -97,7 +101,7 @@ type connection: record {
 	hot: count;		# how hot; 0 = don't know or not hot
 	history: string;
 	uid: string;
-	tunnel_parent: tunnel_parent_t &optional;
+	tunnel_parent: Tunnel::parent_t &optional;
 };
 
 type SYN_packet: record {
@@ -1489,6 +1493,28 @@ const skip_http_data = F &redef;
 # UDP tunnels. See also: udp_tunnel_port, policy/udp-tunnel.bro.
 const parse_udp_tunnels = F &redef;
 
+module Tunnel;
+export {
+	# Whether to decapsulate IP tunnels (IPinIP, 6in4, 6to4)
+	const decapsulate_ip = F &redef;
+
+	# Whether to decapsulate URDP tunnels (e.g., Teredo, IPv4 in UDP)
+	const decapsulate_udp = F &redef;
+
+	# If decapsulating UDP: the set of ports for which to do so
+	const udp_tunnel_ports: set[port] = { 
+		3544/udp,    # Teredo 
+		5072/udp,    # AYIAY
+	} &redef;
+
+	# If udp_tunnel_allports is T udp_tunnel_ports is ignored and we
+	# check every UDP packet for tunnels. 
+	const udp_tunnel_allports = F &redef;
+} # end export
+module GLOBAL;
+
+
+
 # Load the site utilities.
 @load utils/site
 
diff --git a/src/Sessions.cc b/src/Sessions.cc
index 48fab1bff4..41a7f4c52d 100644
--- a/src/Sessions.cc
+++ b/src/Sessions.cc
@@ -131,10 +131,11 @@ NetSessions::NetSessions()
 		arp_analyzer = 0;
 
 
-	if ( 1 )
+	if ( BifConst::Tunnel::decapsulate_ip || BifConst::Tunnel::decapsulate_udp )
 		tunnel_handler = new TunnelHandler(this);
 	else
 		tunnel_handler = 0;
+	printf("tunnel_handler: %p\n", tunnel_handler);
 	}
 
 NetSessions::~NetSessions()
@@ -473,13 +474,20 @@ void NetSessions::DoNextPacket(double t, const struct pcap_pkthdr* hdr,
 			}
 		}
 
-	TunnelInfo *tunnel_info = tunnel_handler->DecapsulateTunnel(ip_hdr, len, caplen, hdr, pkt);
-	if (tunnel_info) 
+	len -= ip_hdr_len;	// remove IP header
+	caplen -= ip_hdr_len;
+
+	TunnelInfo *tunnel_info = 0;
+	if ( tunnel_handler ) 
 		{
-		ip4 = tunnel_info->child->IP4_Hdr();
-		ip_hdr = tunnel_info->child;
-		len -= tunnel_info->hdr_len;
-		caplen -= tunnel_info->hdr_len;
+		tunnel_info = tunnel_handler->DecapsulateTunnel(ip_hdr, len, caplen, hdr, pkt);
+		if (tunnel_info) 
+			{
+			ip4 = tunnel_info->child->IP4_Hdr();
+			ip_hdr = tunnel_info->child;
+			len -= tunnel_info->hdr_len;
+			caplen -= tunnel_info->hdr_len;
+			}
 		}
 
 	int proto = ip_hdr->NextProto();
@@ -490,9 +498,6 @@ void NetSessions::DoNextPacket(double t, const struct pcap_pkthdr* hdr,
 		return;
 		}
 
-	len -= ip_hdr_len;	// remove IP header
-	caplen -= ip_hdr_len;
-
 	uint32 min_hdr_len = (proto == IPPROTO_TCP) ?  sizeof(struct tcphdr) :
 		(proto == IPPROTO_UDP ? sizeof(struct udphdr) : ICMP_MINLEN);
 
diff --git a/src/TunnelHandler.cc b/src/TunnelHandler.cc
index c739403ad8..3256894cd0 100644
--- a/src/TunnelHandler.cc
+++ b/src/TunnelHandler.cc
@@ -18,31 +18,151 @@
 TunnelHandler::TunnelHandler(NetSessions *arg_s) 
 	{
 	s = arg_s;
+	for (int i=0; i< 65536; i++)
+		udp_ports[i] = 0;
+	udp_ports[3544] = 1;
+	udp_ports[5072] = 1;
 	}
 
 TunnelInfo* TunnelHandler::DecapsulateTunnel(const IP_Hdr *ip_hdr, int len, int caplen, 
 		const struct pcap_pkthdr* hdr, const u_char* const pkt)
 	{
 	TunnelInfo *tunnel_info = 0;
+	
 	switch (ip_hdr->NextProto()) {
 #ifdef BROv6
 	case IPPROTO_IPV6: /* 6in4  and  6to4 */
-		if (len < (int)sizeof(struct ip6_hdr) || caplen < (int)sizeof(struct ip6_hdr))
-		{
-		s->Weird("truncated_header", hdr, pkt);
-		return 0;
-		}
-		// TODO: check if IP6 header makes sense
-		tunnel_info = new TunnelInfo();
-		tunnel_info->child = new IP_Hdr((const struct ip6_hdr*)ip_hdr->Payload());
-		tunnel_info->tunneltype = BifEnum::IP6inIP;
-		tunnel_info->hdr_len = ip_hdr->HdrLen();
-		tunnel_info->SetParentIPs(ip_hdr);
-		return tunnel_info;
+		if ( BifConst::Tunnel::decapsulate_ip )
+			{
+			if (len < (int)sizeof(struct ip6_hdr) || caplen < (int)sizeof(struct ip6_hdr))
+				{
+				s->Weird("truncated_header", hdr, pkt);
+				return 0;
+				}
+			// TODO: check if IP6 header makes sense
+			tunnel_info = new TunnelInfo();
+			tunnel_info->child = new IP_Hdr((const struct ip6_hdr*)ip_hdr->Payload());
+			tunnel_info->tunneltype = BifEnum::Tunnel::IP6inIP;
+			tunnel_info->hdr_len = tunnel_info->child->HdrLen();
+			tunnel_info->SetParentIPs(ip_hdr);
+			return tunnel_info;
+			}
 		break;
 #endif
+	// TODO: IP in IP. Find test traces first. IP proto 0 and/or 4
+	case IPPROTO_UDP:
+		if ( BifConst::Tunnel::decapsulate_udp )
+			{
+			if (len < (int)sizeof(struct udphdr) || caplen < (int)sizeof(struct udphdr))
+				{
+				// No weird here. Main packet processing will raise it. 
+				return 0;
+				}
+			return HandleUDP(ip_hdr, len, caplen); 
+			}
+
+		break;
 	default:
 		break;
 	} /* end switch */
 	return 0;
 	}
+
+TunnelInfo* TunnelHandler::HandleUDP(const IP_Hdr *ip_hdr, int len, int caplen)
+	{
+	// We already know we that we have a valid UDP header
+	const u_char *data = ip_hdr->Payload();
+	const struct udphdr* uh = (const struct udphdr*)data;
+	IP_Hdr *cand_ip_hdr = 0;
+	BifEnum::Tunnel::tunneltype_t tunneltype = BifEnum::Tunnel::NONE;
+
+	int hdr_len = sizeof(struct udphdr);
+	data += hdr_len;
+
+	int datalen = (int)ntohs(uh->uh_ulen);
+	datalen = min(datalen, min(len, caplen));
+	datalen -= hdr_len;
+
+	if ( BifConst::Tunnel::udp_tunnel_allports || 
+			udp_ports[ntohs(uh->uh_sport)] ||
+			udp_ports[ntohs(uh->uh_dport)] )
+		{
+		cand_ip_hdr = LookForIPHdr(data, datalen);
+		if (cand_ip_hdr)
+			{
+			tunneltype =  (cand_ip_hdr->IP4_Hdr()) ? 
+					BifEnum::Tunnel::IP4inUDP : BifEnum::Tunnel::IP6inUDP;
+			}
+		else if (datalen >= 8)
+			{
+			// Look for AYIAY tunnels
+			u_char id_byte = data[0];
+			u_char sig_byte = data[1];
+			u_char next_hdr = data[3];
+
+			// identity length field is high bits of id_byte. 
+			// length in octets is 2 to the power of length field
+			int id_len = (1 << (id_byte>>4)); 
+
+			// signature length field is high bits of sig_byte
+			// length in octets 4 * length field
+			int sig_len = 4*(sig_byte>>4);
+
+			datalen -= 8 + id_len + sig_len;
+			data += 8 + id_len + sig_len;
+			if (datalen <= 0) 
+				return 0;
+			cand_ip_hdr = LookForIPHdr(data, datalen);
+			if (cand_ip_hdr)
+				{
+				hdr_len += 8 + id_len + sig_len;
+				tunneltype =  (cand_ip_hdr->IP4_Hdr()) ? 
+						BifEnum::Tunnel::IP4inAYIAY : BifEnum::Tunnel::IP6inAYIAY;
+				}
+			}
+		if (cand_ip_hdr)
+			{
+			TunnelInfo *tunnel_info = new TunnelInfo();
+			tunnel_info->child = cand_ip_hdr;
+			tunnel_info->tunneltype =  tunneltype;
+			tunnel_info->SetParentIPs(ip_hdr);
+			tunnel_info->SetParentPorts(uh);
+			tunnel_info->hdr_len = hdr_len + cand_ip_hdr->HdrLen();
+			return tunnel_info;
+			};
+		}
+	return 0;
+	}
+
+IP_Hdr* TunnelHandler::LookForIPHdr(const u_char *data, int datalen)
+	{
+	IP_Hdr *cand_ip_hdr = 0;
+	if (datalen < (int)sizeof(struct ip))
+		return 0;
+
+	const struct ip *ip4 = (const struct ip*)(data);
+	if (ip4->ip_v == 4)
+		cand_ip_hdr = new IP_Hdr((const struct ip*)ip4);
+	else if (ip4->ip_v == 6 && (datalen > (int)sizeof(struct ip6_hdr)))
+		cand_ip_hdr = new IP_Hdr((const struct ip6_hdr*)data);
+
+	if (cand_ip_hdr) 
+		{
+		switch (cand_ip_hdr->NextProto()) {
+		case IPPROTO_UDP:
+		case IPPROTO_TCP:
+		case IPPROTO_ICMP:
+			if ((int)cand_ip_hdr->TotalLen() != datalen)
+				{
+				delete cand_ip_hdr;
+				cand_ip_hdr = 0;
+				}
+			break;
+		default:
+			delete cand_ip_hdr;
+			cand_ip_hdr = 0;
+			break;
+		} // end switch
+		}
+	return cand_ip_hdr;
+	}
diff --git a/src/TunnelHandler.h b/src/TunnelHandler.h
index aa4cae0a39..31c9791a1c 100644
--- a/src/TunnelHandler.h
+++ b/src/TunnelHandler.h
@@ -3,6 +3,7 @@
 #ifndef tunnelhandler_h
 #define tunnelhandler_h
 
+#include <netinet/udp.h>
 #include "IP.h"
 #include "Conn.h"
 #include "Sessions.h"
@@ -14,7 +15,7 @@ public:
 	TunnelInfo()
 		{
 		child = 0;
-		tunneltype = BifEnum::NONE;
+		tunneltype = BifEnum::Tunnel::NONE;
 		hdr_len = 0;
 		parent.src_addr = parent.dst_addr = 0;
 		parent.src_port = parent.dst_port = 0;
@@ -30,30 +31,39 @@ public:
 		parent.src_addr = ip_hdr->SrcAddr();
 		parent.dst_addr = ip_hdr->DstAddr();
 		}
-	void SetParentPorts(uint32 src_port, uint32 dst_port)
+	void SetParentPorts(const struct udphdr *uh)
 		{
-		parent.src_port = src_port;
-		parent.dst_port = dst_port;
+		parent.src_port = uh->uh_sport;
+		parent.dst_port = uh->uh_dport;
 		}
 
 	RecordVal* GetRecordVal() const 
 		{
-		RecordVal *rv = new RecordVal(BifType::Record::tunnel_parent_t);
+		RecordVal *rv = new RecordVal(BifType::Record::Tunnel::parent_t);
+		TransportProto tproto;
+		switch(tunneltype) {
+		case BifEnum::Tunnel::IP6inIP:
+		case BifEnum::Tunnel::IP4inIP:
+			tproto = TRANSPORT_UNKNOWN;
+			break;
+		default:
+			tproto = TRANSPORT_UDP;
+		} // end switch
 
 		RecordVal* id_val = new RecordVal(conn_id);
 		id_val->Assign(0, new AddrVal(parent.src_addr));
-		id_val->Assign(1, new PortVal(ntohs(parent.src_port), TRANSPORT_UNKNOWN));
+		id_val->Assign(1, new PortVal(ntohs(parent.src_port), tproto));
 		id_val->Assign(2, new AddrVal(parent.dst_addr));
-		id_val->Assign(3, new PortVal(ntohs(parent.dst_port), TRANSPORT_UNKNOWN));
+		id_val->Assign(3, new PortVal(ntohs(parent.dst_port), tproto));
 		rv->Assign(0, id_val);
-		rv->Assign(1, new EnumVal(tunneltype, BifType::Enum::tunneltype_t));
+		rv->Assign(1, new EnumVal(tunneltype, BifType::Enum::Tunnel::tunneltype_t));
 		return rv;
 		}
 
 	IP_Hdr *child;
 	ConnID parent;
 	int hdr_len;
-	BifEnum::tunneltype_t tunneltype;
+	BifEnum::Tunnel::tunneltype_t tunneltype;
 };
 
 class TunnelHandler {
@@ -61,12 +71,16 @@ public:
 	TunnelHandler(NetSessions *arg_s);
 	~TunnelHandler();
 
+	// Main entry point. Returns a nil if not tunneled.
 	TunnelInfo* DecapsulateTunnel(const IP_Hdr* ip_hdr, int len, int caplen,
-			/* need those for passing them back to NetSessions::Weird() */
+			// need those for passing them back to NetSessions::Weird() 
 			const struct pcap_pkthdr* hdr, const u_char* const pkt);
 
 protected:
 	NetSessions *s;
+	short udp_ports[65536]; // which UDP ports to decapsulate
+	IP_Hdr* LookForIPHdr(const u_char *data, int datalen);
+	TunnelInfo* HandleUDP(const IP_Hdr *ip_hdr, int len, int caplen);
 };
 
 
diff --git a/src/const.bif b/src/const.bif
index 825c21e7a5..447812a902 100644
--- a/src/const.bif
+++ b/src/const.bif
@@ -12,3 +12,7 @@ const NFS3::return_data: bool;
 const NFS3::return_data_max: count;
 const NFS3::return_data_first_only: bool;
 
+const Tunnel::decapsulate_ip: bool;
+const Tunnel::decapsulate_udp: bool;
+const Tunnel::udp_tunnel_ports: any;
+const Tunnel::udp_tunnel_allports: bool;
diff --git a/src/types.bif b/src/types.bif
index d44f177b82..35c4db0daf 100644
--- a/src/types.bif
+++ b/src/types.bif
@@ -166,11 +166,18 @@ enum ID %{
 	Unknown,
 %}
 
-module GLOBAL;
 
+module Tunnel;
 enum tunneltype_t %{
 	NONE,
-	IP6inIP,
+	IP6inIP,     
+	IP4inIP,  
+	IP6inUDP,
+	IP4inUDP,
+	IP6inAYIAY,
+	IP4inAYIAY,
 %}
 
-type tunnel_parent_t: record;
+type parent_t: record;
+
+module GLOBAL;