diff --git a/pkg/state/ingressstate.go b/pkg/state/ingressstate.go
index ea67f69b..4a48f7d3 100644
--- a/pkg/state/ingressstate.go
+++ b/pkg/state/ingressstate.go
@@ -150,7 +150,7 @@ func (s *StateStore) BuildState(ingressClass *networkingv1.IngressClass) error {
 				if err != nil {
 					return err
 				}
-
+				bsTLSEnabled := util.GetBackendTlsEnabled(ing)
 				certificateId := util.GetListenerTlsCertificateOcid(ing)
 				if certificateId != nil {
 					tlsPortDetail, ok := listenerTLSConfigMap[servicePort]
@@ -165,11 +165,12 @@ func (s *StateStore) BuildState(ingressClass *networkingv1.IngressClass) error {
 						Artifact: *certificateId,
 					}
 					listenerTLSConfigMap[servicePort] = config
-					bsTLSConfigMap[bsName] = config
+					updateBackendTlsStatus(bsTLSEnabled, bsTLSConfigMap, bsName, config)
 				}
 
 				if rule.Host != "" {
 					secretName, ok := hostSecretMap[rule.Host]
+
 					if ok && secretName != "" {
 						tlsPortDetail, ok := listenerTLSConfigMap[servicePort]
 						if ok {
@@ -183,7 +184,7 @@ func (s *StateStore) BuildState(ingressClass *networkingv1.IngressClass) error {
 							Artifact: secretName,
 						}
 						listenerTLSConfigMap[servicePort] = config
-						bsTLSConfigMap[bsName] = config
+						updateBackendTlsStatus(bsTLSEnabled, bsTLSConfigMap, bsName, config)
 					}
 				}
 			}
@@ -214,6 +215,18 @@ func (s *StateStore) BuildState(ingressClass *networkingv1.IngressClass) error {
 	return nil
 }
 
+func updateBackendTlsStatus(bsTLSEnabled bool, bsTLSConfigMap map[string]TlsConfig, bsName string, config TlsConfig) {
+	if bsTLSEnabled {
+		bsTLSConfigMap[bsName] = config
+	} else {
+		config := TlsConfig{
+			Type:     "",
+			Artifact: "",
+		}
+		bsTLSConfigMap[bsName] = config
+	}
+}
+
 func validateBackendSetHealthChecker(ingressResource *networkingv1.Ingress,
 	bsHealthCheckerMap map[string]*ociloadbalancer.HealthCheckerDetails, bsName string) error {
 	defaultHealthChecker := util.GetDefaultHeathChecker()
diff --git a/pkg/state/ingressstate_test.go b/pkg/state/ingressstate_test.go
index 92efa31a..52d326c6 100644
--- a/pkg/state/ingressstate_test.go
+++ b/pkg/state/ingressstate_test.go
@@ -35,6 +35,7 @@ const (
 	TestIngressStateFilePath                  = "test-ingress-state.yaml"
 	TestIngressStateWithPortNameFilePath      = "test-ingress-state_withportname.yaml"
 	TestIngressStateWithNamedClassesFilePath  = "test-ingress-state_withnamedclasses.yaml"
+	TestSslTerminationAtLb                    = "test-ssl-termination-lb.yaml"
 )
 
 func setUp(ctx context.Context, ingressClassList *networkingv1.IngressClassList, ingressList *networkingv1.IngressList, testService *v1.ServiceList) (networkinglisters.IngressClassLister, networkinglisters.IngressLister, corelisters.ServiceLister) {
@@ -418,3 +419,33 @@ func TestValidateProtocolConfigWithConflict(t *testing.T) {
 
 	Expect(err.Error()).Should(ContainSubstring(fmt.Sprintf(ProtocolConflictMessage, 900)))
 }
+
+func TestSslTerminationAtLB(t *testing.T) {
+	RegisterTestingT(t)
+	ctx, cancel := context.WithCancel(context.Background())
+	defer cancel()
+
+	ingressClassList := testutil.GetIngressClassList()
+
+	ingressList := testutil.ReadResourceAsIngressList(TestSslTerminationAtLb)
+
+	certificateId := "certificateId"
+	ingressList.Items[0].Spec.TLS = []networkingv1.IngressTLS{}
+	ingressList.Items[0].Annotations = map[string]string{util.IngressListenerTlsCertificateAnnotation: certificateId}
+
+	testService := testutil.GetServiceListResource("default", "tls-test", 443)
+	ingressClassLister, ingressLister, serviceLister := setUp(ctx, ingressClassList, ingressList, testService)
+
+	stateStore := NewStateStore(ingressClassLister, ingressLister, serviceLister, nil)
+	err := stateStore.BuildState(&ingressClassList.Items[0])
+	Expect(err).NotTo(HaveOccurred())
+
+	bsName := util.GenerateBackendSetName("default", "tls-test", 443)
+	bsTlsConfig := stateStore.IngressGroupState.BackendSetTLSConfigMap[bsName]
+	Expect(bsTlsConfig.Artifact).Should(Equal(""))
+	Expect(bsTlsConfig.Type).Should(Equal(""))
+
+	lstTlsConfig := stateStore.IngressGroupState.ListenerTLSConfigMap[443]
+	Expect(lstTlsConfig.Artifact).Should(Equal(certificateId))
+	Expect(lstTlsConfig.Type).Should(Equal(ArtifactTypeCertificate))
+}
diff --git a/pkg/state/test-ssl-termination-lb.yaml b/pkg/state/test-ssl-termination-lb.yaml
new file mode 100644
index 00000000..1a741e3c
--- /dev/null
+++ b/pkg/state/test-ssl-termination-lb.yaml
@@ -0,0 +1,23 @@
+apiVersion: networking.k8s.io/v1
+kind: Ingress
+metadata:
+  name: ingress-tls
+  annotations:
+    oci-native-ingress.oraclecloud.com/protocol: HTTP2
+    oci-native-ingress.oraclecloud.com/backend-tls-enabled: "false"
+spec:
+  tls:
+    - hosts:
+        - foo.bar.com
+      secretName: secret_name
+  rules:
+    - host: "foo.bar.com"
+      http:
+        paths:
+          - pathType: Prefix
+            path: "/TLSPath"
+            backend:
+              service:
+                name: tls-test
+                port:
+                  number: 443
\ No newline at end of file
diff --git a/pkg/util/util.go b/pkg/util/util.go
index c60be8b4..6ffad8c9 100644
--- a/pkg/util/util.go
+++ b/pkg/util/util.go
@@ -50,6 +50,7 @@ const (
 	IngressControllerFinalizer = "oci.oraclecloud.com/ingress-controller-protection"
 
 	IngressListenerTlsCertificateAnnotation = "oci-native-ingress.oraclecloud.com/certificate-ocid"
+	IngressBackendTlsEnabledAnnotation      = "oci-native-ingress.oraclecloud.com/backend-tls-enabled"
 
 	// IngressProtocolAnntoation - HTTP only for now
 	// HTTP, HTTP2 - accepted.
@@ -164,6 +165,23 @@ func GetListenerTlsCertificateOcid(i *networkingv1.Ingress) *string {
 	return &value
 }
 
+func GetBackendTlsEnabled(i *networkingv1.Ingress) bool {
+	annotation := IngressBackendTlsEnabledAnnotation
+	value, ok := i.Annotations[annotation]
+
+	if !ok || strings.TrimSpace(value) == "" {
+		return true
+	}
+
+	result, err := strconv.ParseBool(value)
+	if err != nil {
+		klog.Errorf("Error parsing value %s for flag %s as boolean. Setting the default value as 'true'", value, annotation)
+		return true
+	}
+
+	return result
+}
+
 func GetIngressHealthCheckProtocol(i *networkingv1.Ingress) string {
 	protocol, ok := i.Annotations[IngressHealthCheckProtocolAnnotation]
 	if !ok {
diff --git a/pkg/util/util_test.go b/pkg/util/util_test.go
index 1dd9324d..81082467 100644
--- a/pkg/util/util_test.go
+++ b/pkg/util/util_test.go
@@ -181,6 +181,41 @@ func TestGetListenerTlsCertificateOcid(t *testing.T) {
 	Expect(result).To(BeNil())
 }
 
+func TestGetBackendTlsEnabled(t *testing.T) {
+	RegisterTestingT(t)
+	i := networkingv1.Ingress{
+		ObjectMeta: metav1.ObjectMeta{
+			Annotations: map[string]string{IngressBackendTlsEnabledAnnotation: "true"},
+		},
+	}
+	result := GetBackendTlsEnabled(&i)
+	Expect(result).Should(Equal(true))
+
+	i = networkingv1.Ingress{
+		ObjectMeta: metav1.ObjectMeta{
+			Annotations: map[string]string{IngressBackendTlsEnabledAnnotation: "false"},
+		},
+	}
+	result = GetBackendTlsEnabled(&i)
+	Expect(result).Should(Equal(false))
+
+	i = networkingv1.Ingress{
+		ObjectMeta: metav1.ObjectMeta{
+			Annotations: map[string]string{IngressBackendTlsEnabledAnnotation: "scam"},
+		},
+	}
+	result = GetBackendTlsEnabled(&i)
+	Expect(result).Should(Equal(true))
+
+	i = networkingv1.Ingress{
+		ObjectMeta: metav1.ObjectMeta{
+			Annotations: map[string]string{IngressBackendTlsEnabledAnnotation: ""},
+		},
+	}
+	result = GetBackendTlsEnabled(&i)
+	Expect(result).Should(Equal(true))
+}
+
 func TestGetIngressHealthCheckProtocol(t *testing.T) {
 	RegisterTestingT(t)
 	protocol := "http"