diff --git a/include/net/ethernet.h b/include/net/ethernet.h
index 8e40f12..584c212 100644
--- a/include/net/ethernet.h
+++ b/include/net/ethernet.h
@@ -544,13 +544,14 @@
  * @param src Source ethernet address
  * @param dst Destination ethernet address
  *
- * @return Pointer to ethernet header struct inside net_buf.
+ * @return Pointer to newly inserted net_buf where header is found,
+ *         NULL otherwise.
  */
-struct net_eth_hdr *net_eth_fill_header(struct ethernet_context *ctx,
-					struct net_pkt *pkt,
-					u32_t ptype,
-					u8_t *src,
-					u8_t *dst);
+struct net_buf *net_eth_fill_header(struct ethernet_context *ctx,
+				    struct net_pkt *pkt,
+				    u32_t ptype,
+				    u8_t *src,
+				    u8_t *dst);
 
 /**
  * @brief Inform ethernet L2 driver that ethernet carrier is detected.
diff --git a/subsys/net/l2/ethernet/arp.c b/subsys/net/l2/ethernet/arp.c
index 31235b4..f3114be 100644
--- a/subsys/net/l2/ethernet/arp.c
+++ b/subsys/net/l2/ethernet/arp.c
@@ -237,7 +237,6 @@
 	struct ethernet_context *ctx = net_if_l2_data(iface);
 	int eth_hdr_len = sizeof(struct net_eth_hdr);
 	struct net_pkt *pkt;
-	struct net_buf *frag;
 	struct net_arp_hdr *hdr;
 	struct net_eth_hdr *eth;
 	struct in_addr *my_addr;
@@ -252,33 +251,28 @@
 		 * things setup so no need to allocate new net_pkt
 		 */
 		pkt = pending;
-
-		net_buf_add(pkt->frags, sizeof(struct net_arp_hdr));
 	} else {
 		pkt = net_pkt_get_reserve_tx(eth_hdr_len, NET_BUF_TIMEOUT);
 		if (!pkt) {
 			return NULL;
 		}
 
-		frag = net_pkt_get_frag(pkt, NET_BUF_TIMEOUT);
-		if (!frag) {
-			net_pkt_unref(pkt);
-			return NULL;
-		}
-
-		net_pkt_frag_add(pkt, frag);
 		net_pkt_set_iface(pkt, iface);
 		net_pkt_set_family(pkt, AF_INET);
-
-		net_buf_add(frag, sizeof(struct net_arp_hdr));
 	}
 
-	hdr = NET_ARP_HDR(pkt);
-
 	net_pkt_set_vlan_tag(pkt, net_eth_get_vlan_tag(iface));
 
-	eth = net_eth_fill_header(ctx, pkt, htons(NET_ETH_PTYPE_ARP),
-				  NULL, NULL);
+	if(!net_eth_fill_header(ctx, pkt, htons(NET_ETH_PTYPE_ARP),
+				NULL, NULL)) {
+		net_pkt_unref(pkt);
+		return NULL;
+	}
+
+	net_buf_add(pkt->frags, sizeof(struct net_arp_hdr));
+
+	eth = NET_ETH_HDR(pkt);
+	hdr = NET_ARP_HDR(pkt);
 
 	/* If entry is not set, then we are just about to send
 	 * an ARP request using the data in pending net_pkt.
@@ -339,7 +333,6 @@
 	struct ethernet_context *ctx;
 	struct arp_entry *entry;
 	struct net_linkaddr *ll;
-	struct net_eth_hdr *hdr;
 	struct in_addr *addr;
 
 	if (!pkt || !pkt->frags) {
@@ -348,24 +341,6 @@
 
 	ctx = net_if_l2_data(net_pkt_iface(pkt));
 
-	if (net_pkt_ll_reserve(pkt) != sizeof(struct net_eth_hdr) &&
-	    (IS_ENABLED(CONFIG_NET_VLAN) &&
-	     net_pkt_ll_reserve(pkt) != sizeof(struct net_eth_vlan_hdr))) {
-		/* Add the ethernet header if it is missing. */
-		struct net_buf *header;
-
-		header = net_pkt_get_frag(pkt, NET_BUF_TIMEOUT);
-		if (!header) {
-			return NULL;
-		}
-
-		net_pkt_frag_insert(pkt, header);
-
-		net_pkt_compact(pkt);
-	}
-
-	hdr = (struct net_eth_hdr *)net_pkt_ll(pkt);
-
 	/* Is the destination in the local network, if not route via
 	 * the gateway address.
 	 */
@@ -429,10 +404,13 @@
 					      sizeof(struct net_eth_addr))),
 		log_strdup(net_sprint_ipv4_addr(&NET_IPV4_HDR(pkt)->src)));
 
-	net_eth_fill_header(ctx, pkt,
-			    current_ip == NULL ? htons(NET_ETH_PTYPE_IP) :
-						 htons(NET_ETH_PTYPE_ARP),
-			    ll->addr, entry->eth.addr);
+	if (!net_eth_fill_header(ctx, pkt,
+				 current_ip == NULL ?
+				 htons(NET_ETH_PTYPE_IP) :
+				 htons(NET_ETH_PTYPE_ARP),
+				 ll->addr, entry->eth.addr)) {
+		return NULL;
+	}
 
 	return pkt;
 }
@@ -519,26 +497,25 @@
 		goto fail;
 	}
 
-	frag = net_pkt_get_frag(pkt, NET_BUF_TIMEOUT);
+	net_pkt_set_iface(pkt, iface);
+	net_pkt_set_family(pkt, AF_INET);
+
+	eth_query = NET_ETH_HDR(req);
+
+	frag = net_eth_fill_header(ctx, pkt, htons(NET_ETH_PTYPE_ARP),
+				   net_if_get_link_addr(iface)->addr,
+				   eth_query->src.addr);
 	if (!frag) {
 		goto fail;
 	}
 
-	net_pkt_frag_add(pkt, frag);
-	net_pkt_set_iface(pkt, iface);
-	net_pkt_set_family(pkt, AF_INET);
 
 	hdr = NET_ARP_HDR(pkt);
 	eth = NET_ETH_HDR(pkt);
 	query = NET_ARP_HDR(req);
-	eth_query = NET_ETH_HDR(req);
 
 	net_pkt_set_vlan_tag(pkt, net_pkt_vlan_tag(req));
 
-	net_eth_fill_header(ctx, pkt, htons(NET_ETH_PTYPE_ARP),
-			    net_if_get_link_addr(iface)->addr,
-			    eth_query->src.addr);
-
 	hdr->hwtype = htons(NET_ARP_HTYPE_ETH);
 	hdr->protocol = htons(NET_ETH_PTYPE_IP);
 	hdr->hwlen = sizeof(struct net_eth_addr);
diff --git a/subsys/net/l2/ethernet/ethernet.c b/subsys/net/l2/ethernet/ethernet.c
index 8aaf65c..e02633e 100644
--- a/subsys/net/l2/ethernet/ethernet.c
+++ b/subsys/net/l2/ethernet/ethernet.c
@@ -21,6 +21,8 @@
 #include "ipv6.h"
 #include "ipv4_autoconf_internal.h"
 
+#define NET_BUF_TIMEOUT K_MSEC(100)
+
 #if defined(CONFIG_NET_IPV6)
 static const struct net_eth_addr multicast_eth_addr = {
 	{ 0x33, 0x33, 0x00, 0x00, 0x00, 0x00 } };
@@ -338,23 +340,28 @@
 #define set_vlan_priority(...)
 #endif /* CONFIG_NET_VLAN */
 
-struct net_eth_hdr *net_eth_fill_header(struct ethernet_context *ctx,
-					struct net_pkt *pkt,
-					u32_t ptype,
-					u8_t *src,
-					u8_t *dst)
+struct net_buf *net_eth_fill_header(struct ethernet_context *ctx,
+				    struct net_pkt *pkt,
+				    u32_t ptype,
+				    u8_t *src,
+				    u8_t *dst)
 {
+	struct net_buf *hdr_frag;
 	struct net_eth_hdr *hdr;
-	struct net_buf *frag = pkt->frags;
+
+	hdr_frag = net_pkt_get_frag(pkt, NET_BUF_TIMEOUT);
+	if (!hdr_frag) {
+		return NULL;
+	}
 
 	if (IS_ENABLED(CONFIG_NET_VLAN) &&
 	    net_eth_is_vlan_enabled(ctx, net_pkt_iface(pkt))) {
 		struct net_eth_vlan_hdr *hdr_vlan;
 
-		NET_ASSERT(net_buf_headroom(frag) >=
+		NET_ASSERT(net_buf_headroom(hdr_frag) >=
 			   sizeof(struct net_eth_vlan_hdr));
 
-		hdr_vlan = (struct net_eth_vlan_hdr *)(frag->data -
+		hdr_vlan = (struct net_eth_vlan_hdr *)(hdr_frag->data -
 						       net_pkt_ll_reserve(pkt));
 
 		if (dst && ((u8_t *)&hdr_vlan->dst != dst)) {
@@ -373,29 +380,32 @@
 
 		print_vlan_ll_addrs(pkt, ntohs(hdr_vlan->type),
 				    net_pkt_vlan_tci(pkt),
-				    frag->len,
+				    hdr_frag->len,
 				    &hdr_vlan->src, &hdr_vlan->dst);
+	} else {
+		NET_ASSERT(net_buf_headroom(hdr_frag) >=
+			   sizeof(struct net_eth_hdr));
 
-		return (struct net_eth_hdr *)hdr_vlan;
+		hdr = (struct net_eth_hdr *)(hdr_frag->data -
+					     net_pkt_ll_reserve(pkt));
+
+		if (dst && ((u8_t *)&hdr->dst != dst)) {
+			memcpy(&hdr->dst, dst, sizeof(struct net_eth_addr));
+		}
+
+		if (src && ((u8_t *)&hdr->src != src)) {
+			memcpy(&hdr->src, src, sizeof(struct net_eth_addr));
+		}
+
+		hdr->type = ptype;
+
+		print_ll_addrs(pkt, ntohs(hdr->type),
+			       hdr_frag->len, &hdr->src, &hdr->dst);
 	}
 
-	NET_ASSERT(net_buf_headroom(frag) >= sizeof(struct net_eth_hdr));
+	net_pkt_frag_insert(pkt, hdr_frag);
 
-	hdr = (struct net_eth_hdr *)(frag->data - net_pkt_ll_reserve(pkt));
-
-	if (dst && ((u8_t *)&hdr->dst != dst)) {
-		memcpy(&hdr->dst, dst, sizeof(struct net_eth_addr));
-	}
-
-	if (src && ((u8_t *)&hdr->src != src)) {
-		memcpy(&hdr->src, src, sizeof(struct net_eth_addr));
-	}
-
-	hdr->type = ptype;
-
-	print_ll_addrs(pkt, ntohs(hdr->type), frag->len, &hdr->src, &hdr->dst);
-
-	return hdr;
+	return hdr_frag;
 }
 
 #if defined(CONFIG_NET_IPV4_AUTO)
@@ -549,9 +559,11 @@
 	 * has already prepared the message to be sent.
 	 */
 	if (ptype != htons(NET_ETH_PTYPE_ARP)) {
-		net_eth_fill_header(ctx, pkt, ptype,
-				    net_pkt_lladdr_src(pkt)->addr,
-				    net_pkt_lladdr_dst(pkt)->addr);
+		if (!net_eth_fill_header(ctx, pkt, ptype,
+					 net_pkt_lladdr_src(pkt)->addr,
+					 net_pkt_lladdr_dst(pkt)->addr)) {
+			return NET_DROP;
+		}
 	}
 
 	net_if_queue_tx(iface, pkt);