diff --git a/sys/netinet/ip_input.c b/sys/netinet/ip_input.c
--- a/sys/netinet/ip_input.c
+++ b/sys/netinet/ip_input.c
@@ -736,14 +736,9 @@
 		}
 		ia = NULL;
 	}
-	/* RFC 3927 2.7: Do not forward datagrams for 169.254.0.0/16. */
-	if (IN_LINKLOCAL(ntohl(ip->ip_dst.s_addr))) {
-		IPSTAT_INC(ips_cantforward);
-		m_freem(m);
-		return;
-	}
 	if (IN_MULTICAST(ntohl(ip->ip_dst.s_addr))) {
-		if (V_ip_mrouter) {
+		/* RFC 3927 2.7: Do not forward datagrams 169.254.0.0/16 */
+		if (V_ip_mrouter && !IN_LINKLOCAL(ntohl(ip->ip_src.s_addr))) {
 			/*
 			 * If we are acting as a multicast router, all
 			 * incoming multicast packets are passed to the
@@ -779,6 +774,14 @@
 	if (ip->ip_dst.s_addr == INADDR_ANY)
 		goto ours;
 
+	/* RFC 3927 2.7: Do not forward datagrams for 169.254.0.0/16. */
+	if (IN_LINKLOCAL(ntohl(ip->ip_src.s_addr)) ||
+		IN_LINKLOCAL(ntohl(ip->ip_dst.s_addr))) {
+		IPSTAT_INC(ips_cantforward);
+		m_freem(m);
+		return;
+	}
+
 	/*
 	 * Not for us; forward if possible and desirable.
 	 */