Cisco SD-WAN uses Path MTU Discovery to avoid fragmentation problems across the overlay. SD-WAN traffic is encapsulated and encrypted, which adds overhead beyond the original packet size. If the effective path MTU is smaller than the encapsulated packet, fragmentation or packet loss can occur, especially when the DF bit is set or when intermediate devices block fragmentation-related ICMP messages. PMTUD allows devices to discover the largest packet size that can traverse the path without fragmentation and adjust forwarding behavior accordingly. Marking traffic with DF alone does not solve the issue; it may expose the problem by causing packets to be dropped when too large. Jumbo frames are not a universal WAN solution because service-provider, Internet, and broadband paths often do not support them consistently. Configuring every access circuit with a fixed 1600-byte MTU is not a reliable design assumption. The correct design is to rely on PMTUD and validate tunnel overhead, device MTU, TCP MSS adjustment where needed, and ICMP handling across transports. Reference topics: Cisco SD-WAN MTU, PMTUD, tunnel overhead, fragmentation avoidance, IPsec encapsulation.