diff --git a/src/sonic-yang-models/doc/Configuration.md b/src/sonic-yang-models/doc/Configuration.md
index 7a5273c7d8a..654a4dda3d8 100644
--- a/src/sonic-yang-models/doc/Configuration.md
+++ b/src/sonic-yang-models/doc/Configuration.md
@@ -91,6 +91,7 @@ Table of Contents
          * [XCVRD_LOG](#xcvrd_log)
          * [PASSWORD_HARDENING](#password_hardening)
          * [SSH_SERVER](#ssh_server)
+         * [SUBNET_DECAP](#subnet_decap)
          * [SYSTEM_DEFAULTS table](#systemdefaults-table)
          * [RADIUS](#radius)
          * [Static DNS](#static-dns)
@@ -2815,6 +2816,20 @@ The method could be:
 }
 ```
 
+### SUBNET_DECAP
+
+The **SUBNET_DECAP** table is used for subnet decap configuration.
+
+```
+"SUBNET_DECAP": {
+    "AZURE": {
+        "status": "enable",
+        "src_ip": "10.10.10.0/24",
+        "src_ip_v6": "20c1:ba8::/64"
+    }
+}
+```
+
 ### SYSTEM_DEFAULTS table
 To have a better management of the features in SONiC, a new table `SYSTEM_DEFAULTS` is introduced.
 
diff --git a/src/sonic-yang-models/setup.py b/src/sonic-yang-models/setup.py
index b2fe359896f..c6f7d92b77d 100644
--- a/src/sonic-yang-models/setup.py
+++ b/src/sonic-yang-models/setup.py
@@ -167,6 +167,7 @@ def run(self):
                          './yang-models/sonic-system-tacacs.yang',
                          './yang-models/sonic-system-radius.yang',
                          './yang-models/sonic-system-ldap.yang',
+                         './yang-models/sonic-subnet-decap.yang',
                          './yang-models/sonic-telemetry.yang',
                          './yang-models/sonic-telemetry_client.yang',
                          './yang-models/sonic-gnmi.yang',
diff --git a/src/sonic-yang-models/tests/files/sample_config_db.json b/src/sonic-yang-models/tests/files/sample_config_db.json
index 1c661171c52..01a78a82123 100644
--- a/src/sonic-yang-models/tests/files/sample_config_db.json
+++ b/src/sonic-yang-models/tests/files/sample_config_db.json
@@ -5,6 +5,13 @@
                     "vni" : "100"
                 }
         },
+        "SUBNET_DECAP": {
+            "AZURE": {
+                "status": "enable",
+                "src_ip": "10.10.10.0/24",
+                "src_ip_v6": "20c1:ba8::/64"
+            }
+        },
         "DHCP_SERVER": {
             "192.0.0.8": {},
             "192.0.0.8": {},
diff --git a/src/sonic-yang-models/tests/yang_model_tests/tests/subnet_decap.json b/src/sonic-yang-models/tests/yang_model_tests/tests/subnet_decap.json
new file mode 100644
index 00000000000..d3ce0b72136
--- /dev/null
+++ b/src/sonic-yang-models/tests/yang_model_tests/tests/subnet_decap.json
@@ -0,0 +1,31 @@
+{
+    "SUBNET_DECAP_DEFAULT_TEST": {
+        "desc": "Configure SUBNET_DECAP table."
+    },
+    "SUBNET_DECAP_ENABLE_TEST": {
+        "desc": "Configure SUBNET_DECAP table with status as enable."
+    },
+    "SUBNET_DECAP_DISABLE_TEST": {
+        "desc": "Configure SUBNET_DECAP table with status as disable."
+    },
+    "SUBNET_DECAP_INVALID_STATUS_TEST": {
+        "desc": "Configure SUBNET_DECAP table with invalid status.",
+        "eStrKey": "InvalidValue"
+    },
+    "SUBNET_DECAP_INVALID_IPV4": {
+        "desc": "Configure SUBNET_DECAP table with invalid src ipv4 prefix.",
+        "eStrKey": "Pattern"
+    },
+    "SUBNET_DECAP_INVALID_IPV6": {
+        "desc": "Configure SUBNET_DECAP table with invalid src ipv6 prefix.",
+        "eStrKey": "Pattern"
+    },
+    "SUBNET_DECAP_NO_IPV4": {
+        "desc": "Configure SUBNET_DECAP table without src ipv4 prefix.",
+        "eStrKey": "Mandatory"
+    },
+    "SUBNET_DECAP_NO_IPV6": {
+        "desc": "Configure SUBNET_DECAP table without src ipv6 prefix.",
+        "eStrKey": "Mandatory"
+    }
+}
diff --git a/src/sonic-yang-models/tests/yang_model_tests/tests_config/subnet_decap.json b/src/sonic-yang-models/tests/yang_model_tests/tests_config/subnet_decap.json
new file mode 100644
index 00000000000..6b8373d7ad3
--- /dev/null
+++ b/src/sonic-yang-models/tests/yang_model_tests/tests_config/subnet_decap.json
@@ -0,0 +1,111 @@
+{
+    "SUBNET_DECAP_DEFAULT_TEST": {
+        "sonic-subnet-decap:sonic-subnet-decap": {
+            "sonic-subnet-decap:SUBNET_DECAP": {
+                "SUBNET_DECAP_LIST": [
+                    {
+                        "name": "AZURE",
+                        "src_ip": "10.10.10.0/24",
+                        "src_ip_v6": "20c1:ba8::/64"
+                    }
+                ]
+            }
+        }
+    },
+    "SUBNET_DECAP_ENABLE_TEST": {
+        "sonic-subnet-decap:sonic-subnet-decap": {
+            "sonic-subnet-decap:SUBNET_DECAP": {
+                "SUBNET_DECAP_LIST": [
+                    {
+                        "name": "AZURE",
+                        "status": "enable",
+                        "src_ip": "10.10.10.0/24",
+                        "src_ip_v6": "20c1:ba8::/64"
+                    }
+                ]
+            }
+        }
+    },
+    "SUBNET_DECAP_DISABLE_TEST": {
+        "sonic-subnet-decap:sonic-subnet-decap": {
+            "sonic-subnet-decap:SUBNET_DECAP": {
+                "SUBNET_DECAP_LIST": [
+                    {
+                        "name": "AZURE",
+                        "status": "disable",
+                        "src_ip": "10.10.10.0/24",
+                        "src_ip_v6": "20c1:ba8::/64"
+                    }
+                ]
+            }
+        }
+    },
+    "SUBNET_DECAP_INVALID_STATUS_TEST": {
+        "sonic-subnet-decap:sonic-subnet-decap": {
+            "sonic-subnet-decap:SUBNET_DECAP": {
+                "SUBNET_DECAP_LIST": [
+                    {
+                        "name": "AZURE",
+                        "status": "enabled",
+                        "src_ip": "10.10.10.0/24",
+                        "src_ip_v6": "20c1:ba8::/64"
+                    }
+                ]
+            }
+        }
+    },
+    "SUBNET_DECAP_INVALID_IPV4": {
+        "sonic-subnet-decap:sonic-subnet-decap": {
+            "sonic-subnet-decap:SUBNET_DECAP": {
+                "SUBNET_DECAP_LIST": [
+                    {
+                        "name": "AZURE",
+                        "status": "enable",
+                        "src_ip": "10.10.10.01111/24",
+                        "src_ip_v6": "20c1:ba8::/64"
+                    }
+                ]
+            }
+        }
+    },
+    "SUBNET_DECAP_INVALID_IPV6": {
+        "sonic-subnet-decap:sonic-subnet-decap": {
+            "sonic-subnet-decap:SUBNET_DECAP": {
+                "SUBNET_DECAP_LIST": [
+                    {
+                        "name": "AZURE",
+                        "status": "enable",
+                        "src_ip": "10.10.10.0/24",
+                        "src_ip_v6": "20c1:ba8::01111/64"
+                    }
+                ]
+            }
+        }
+    },
+    "SUBNET_DECAP_NO_IPV4": {
+        "sonic-subnet-decap:sonic-subnet-decap": {
+            "sonic-subnet-decap:SUBNET_DECAP": {
+                "SUBNET_DECAP_LIST": [
+                    {
+                        "name": "AZURE",
+                        "status": "enable",
+                        "src_ip_v6": "20c1:ba8::/64"
+                    }
+                ]
+            }
+        }
+    },
+    "SUBNET_DECAP_NO_IPV6": {
+        "sonic-subnet-decap:sonic-subnet-decap": {
+            "sonic-subnet-decap:SUBNET_DECAP": {
+                "SUBNET_DECAP_LIST": [
+                    {
+                        "name": "AZURE",
+                        "status": "enable",
+                        "src_ip": "10.10.10.0/24"
+                    }
+                ]
+            }
+        }
+    }
+}
diff --git a/src/sonic-yang-models/yang-models/sonic-subnet-decap.yang b/src/sonic-yang-models/yang-models/sonic-subnet-decap.yang
new file mode 100644
index 00000000000..c14c6b21846
--- /dev/null
+++ b/src/sonic-yang-models/yang-models/sonic-subnet-decap.yang
@@ -0,0 +1,57 @@
+module sonic-subnet-decap {
+
+    yang-version 1.1;
+
+    namespace  "http://github.com/sonic-net/sonic-subnet-decap";
+
+    prefix subnet-decap;
+
+    import ietf-inet-types {
+        prefix inet;
+    }
+
+    import sonic-types {
+        prefix stypes;
+    }
+
+    description "Subnet decap configuration for SONiC OS.";
+
+    revision 2024-12-19 {
+        description "Initial version";
+    }
+
+    container sonic-subnet-decap {
+        container SUBNET_DECAP {
+
+            description "CONFIG_DB subnet decap configuration.";
+
+            list SUBNET_DECAP_LIST {
+
+                key "name";
+
+                leaf name {
+                    type string;
+                    description "Subnet Decap config name.";
+                }
+
+                leaf status {
+                    type stypes:mode-status;
+                    default disable;
+                    description "Subnet Decap status.";
+                }
+
+                leaf src_ip {
+                    type inet:ipv4-prefix;
+                    description "Subnet decap term source IPv4 prefix.";
+                    mandatory true;
+                }
+
+                leaf src_ip_v6 {
+                    type inet:ipv6-prefix;
+                    description "Subnet decap term source IPv6 prefix.";
+                    mandatory true;
+                }
+            }
+        }
+    }
+}