diff --git a/bgpd/bgp_packet.c b/bgpd/bgp_packet.c
index 8d479c272320..6f5280c2647c 100644
--- a/bgpd/bgp_packet.c
+++ b/bgpd/bgp_packet.c
@@ -2015,7 +2015,9 @@ static int bgp_open_receive(struct peer_connection *connection,
 		}
 		(void)peer_sort(peer);
 	} else if (peer->as_type == AS_INTERNAL) {
-		if (remote_as != peer->bgp->as) {
+		as_t local_as = peer->change_local_as ? peer->change_local_as : peer->bgp->as;
+
+		if (remote_as != local_as) {
 			if (bgp_debug_neighbor_events(peer))
 				zlog_debug(
 					"%s bad OPEN, remote AS is %u, internal specified",
@@ -2026,7 +2028,7 @@ static int bgp_open_receive(struct peer_connection *connection,
 						  notify_data_remote_as, 2);
 			return BGP_Stop;
 		}
-		peer->as = peer->local_as;
+		peer->as = peer->change_local_as ? peer->change_local_as : peer->local_as;
 	} else if (peer->as_type == AS_EXTERNAL) {
 		if (remote_as == peer->bgp->as) {
 			if (bgp_debug_neighbor_events(peer))
diff --git a/bgpd/bgp_vty.c b/bgpd/bgp_vty.c
index 39a21e725d9e..e5ebc919b25d 100644
--- a/bgpd/bgp_vty.c
+++ b/bgpd/bgp_vty.c
@@ -15839,7 +15839,8 @@ static void bgp_show_peer(struct vty *vty, struct peer *p, uint16_t sh_flags, bo
 								: "");
 	}
 	/* peer type internal or confed-internal */
-	if ((p->as == p->local_as) || (CHECK_FLAG(p->as_type, AS_INTERNAL))) {
+	if (p->as == p->local_as || (p->change_local_as && p->as == p->change_local_as) ||
+	    CHECK_FLAG(p->as_type, AS_INTERNAL)) {
 		if (use_json) {
 			if (CHECK_FLAG(bgp->config, BGP_CONFIG_CONFEDERATION))
 				json_object_boolean_true_add(
@@ -15854,7 +15855,7 @@ static void bgp_show_peer(struct vty *vty, struct peer *p, uint16_t sh_flags, bo
 				vty_out(vty, "internal link\n");
 		}
 	/* peer type external or confed-external */
-	} else if (p->as || (p->as_type == AS_EXTERNAL)) {
+	} else if (p->as || CHECK_FLAG(p->as_type, AS_EXTERNAL)) {
 		if (use_json) {
 			if (CHECK_FLAG(bgp->config, BGP_CONFIG_CONFEDERATION))
 				json_object_boolean_true_add(
diff --git a/tests/topotests/bgp_remote_as_auto/r1/frr.conf b/tests/topotests/bgp_remote_as_auto/r1/frr.conf
index b1c9038467e6..d919e9d4b869 100644
--- a/tests/topotests/bgp_remote_as_auto/r1/frr.conf
+++ b/tests/topotests/bgp_remote_as_auto/r1/frr.conf
@@ -14,12 +14,13 @@ router bgp 65001
  neighbor 192.168.1.3 remote-as auto
  neighbor 192.168.1.3 timers 1 3
  neighbor 192.168.1.3 timers connect 1
+ neighbor 192.168.1.5 remote-as auto
+ neighbor 192.168.1.5 timers 1 3
+ neighbor 192.168.1.5 timers connect 1
+ neighbor 192.168.1.5 local-as 65005 no-prepend replace-as
  neighbor r1-eth1 interface remote-as auto
  neighbor r1-eth1 timers 1 3
  neighbor r1-eth1 timers connect 1
- neighbor 192.168.1.5 remote-as internal
- neighbor 192.168.1.5 timers 1 3
- neighbor 192.168.1.5 timers connect 1
  address-family ipv4 unicast
   network 10.0.0.1/32
  exit-address-family
diff --git a/tests/topotests/bgp_remote_as_auto/r5/frr.conf b/tests/topotests/bgp_remote_as_auto/r5/frr.conf
index 05b515b71698..b15a15b8dcff 100644
--- a/tests/topotests/bgp_remote_as_auto/r5/frr.conf
+++ b/tests/topotests/bgp_remote_as_auto/r5/frr.conf
@@ -6,9 +6,10 @@ router bgp 65001
  no bgp ebgp-requires-policy
  neighbor PG peer-group
  neighbor 192.168.1.1 peer-group PG
- neighbor 192.168.1.1 remote-as auto
+ neighbor 192.168.1.1 remote-as internal
  neighbor 192.168.1.1 timers 1 3
  neighbor 192.168.1.1 timers connect 1
+ neighbor 192.168.1.1 local-as 65005 no-prepend replace-as
  neighbor 192.168.1.2 peer-group PG
  neighbor 192.168.1.2 remote-as internal
  neighbor 192.168.1.2 timers 1 3
diff --git a/tests/topotests/bgp_remote_as_auto/test_bgp_remote_as_auto.py b/tests/topotests/bgp_remote_as_auto/test_bgp_remote_as_auto.py
index 35047c648ba5..2748a058c426 100644
--- a/tests/topotests/bgp_remote_as_auto/test_bgp_remote_as_auto.py
+++ b/tests/topotests/bgp_remote_as_auto/test_bgp_remote_as_auto.py
@@ -74,6 +74,12 @@ def _bgp_converge():
                     "localAs": 65001,
                     "state": "Established",
                 },
+                "192.168.1.5": {
+                    "hostname": "r5",
+                    "remoteAs": 65005,
+                    "localAs": 65005,
+                    "state": "Established",
+                },
             }
         }
         return topotest.json_cmp(output, expected)
@@ -84,6 +90,30 @@ def _bgp_converge():
     _, result = topotest.run_and_expect(test_func, None, count=30, wait=1)
     assert result is None, "Can't see automatic iBGP/eBGP peerings"
 
+    def _bgp_neighbors():
+        output = json.loads(r1.vtysh_cmd("show bgp neighbors json"))
+        expected = {
+            "r1-eth1": {
+                "nbrExternalLink": True,
+            },
+            "192.168.1.2": {
+                "nbrExternalLink": None,
+            },
+            "192.168.1.3": {
+                "nbrExternalLink": True,
+            },
+            "192.168.1.5": {
+                "nbrExternalLink": None,
+            },
+        }
+        return topotest.json_cmp(output, expected)
+
+    test_func = functools.partial(
+        _bgp_neighbors,
+    )
+    _, result = topotest.run_and_expect(test_func, None, count=30, wait=1)
+    assert result is None, "Neighbors link types are not matching"
+
     def _bgp_converge_internal():
         output = json.loads(r2.vtysh_cmd("show bgp ipv4 unicast 10.0.0.1/32 json"))
         expected = {
@@ -162,8 +192,8 @@ def _bgp_converge_peer_group():
             "peers": {
                 "192.168.1.1": {
                     "hostname": "r1",
-                    "remoteAs": 65001,
-                    "localAs": 65001,
+                    "remoteAs": 65005,
+                    "localAs": 65005,
                     "state": "Established",
                 },
                 "192.168.1.2": {