Presented herein are methods for advertising an IP prefix to address the connectivity problem in multi-chassis link aggregation scenario. A peer switch will advertise two VTEP addresses. It will use a physical IP (PIP) address as a next hop (NH) for a prefix route, while continuing to use a VIP for host IP and MAC route advertisement. A new virtual MAC is introduced and it is derived from the VIP as the router MAC associated with VIP. A switch is made to use a VIP for prefix advertisement when a device detects that the same prefix is reachable both locally and from its peer. This saves adjacency entries consumed in the remote VTEPs. These techniques fix the connectivity issue for prefix routes that is exposed with current EVPN, without requiring any additional adjacency resource consumption.