diff --git a/lxd/network/driver_common.go b/lxd/network/driver_common.go
index 377ac49f81f4..9cc8d292e4fc 100644
--- a/lxd/network/driver_common.go
+++ b/lxd/network/driver_common.go
@@ -53,6 +53,7 @@ const (
 	subnetUsageNetworkForward
 	subnetUsageInstance
 	subnetUsageProxy
+	subnetUsageVolatileIP
 )
 
 // externalSubnetUsage represents usage of a subnet by a network or NIC.
diff --git a/lxd/network/driver_ovn.go b/lxd/network/driver_ovn.go
index 3b398f96d872..66bd798223c7 100644
--- a/lxd/network/driver_ovn.go
+++ b/lxd/network/driver_ovn.go
@@ -7,6 +7,7 @@ import (
 	"net"
 	"net/http"
 	"os"
+	"slices"
 	"sort"
 	"strconv"
 	"strings"
@@ -4094,15 +4095,32 @@ func (n *ovn) ovnNetworkExternalSubnets(ovnProjectNetworksWithOurUplink map[stri
 					})
 				}
 
+				subnetSize := 128
+				if keyPrefix == "ipv4" {
+					subnetSize = 32
+				}
+
 				// Find any external subnets used for network SNAT.
 				if netInfo.Config[fmt.Sprintf("%s.nat.address", keyPrefix)] != "" {
 					key := fmt.Sprintf("%s.nat.address", keyPrefix)
 
-					subnetSize := 128
-					if keyPrefix == "ipv4" {
-						subnetSize = 32
+					_, ipNet, err := net.ParseCIDR(fmt.Sprintf("%s/%d", netInfo.Config[key], subnetSize))
+					if err != nil {
+						return nil, fmt.Errorf("Failed parsing %q of %q in project %q: %w", key, netInfo.Name, netProject, err)
 					}
 
+					externalSubnets = append(externalSubnets, externalSubnetUsage{
+						subnet:         *ipNet,
+						networkProject: netProject,
+						networkName:    netInfo.Name,
+						usageType:      subnetUsageNetworkSNAT,
+					})
+				}
+
+				// Find the volatile IP for the network.
+				if netInfo.Config[fmt.Sprintf("volatile.network.%s.address", keyPrefix)] != "" {
+					key := fmt.Sprintf("volatile.network.%s.address", keyPrefix)
+
 					_, ipNet, err := net.ParseCIDR(fmt.Sprintf("%s/%d", netInfo.Config[key], subnetSize))
 					if err != nil {
 						return nil, fmt.Errorf("Failed parsing %q of %q in project %q: %w", key, netInfo.Name, netProject, err)
@@ -4112,7 +4130,7 @@ func (n *ovn) ovnNetworkExternalSubnets(ovnProjectNetworksWithOurUplink map[stri
 						subnet:         *ipNet,
 						networkProject: netProject,
 						networkName:    netInfo.Name,
-						usageType:      subnetUsageNetworkSNAT,
+						usageType:      subnetUsageVolatileIP,
 					})
 				}
 			}
@@ -4411,11 +4429,6 @@ func (n *ovn) ForwardCreate(forward api.NetworkForwardsPost, clientType request.
 			return err
 		}
 
-		externalSubnetsInUse, err := n.getExternalSubnetInUse(n.config["network"])
-		if err != nil {
-			return err
-		}
-
 		// Check the listen address subnet is allowed within both the uplink's external routes and any
 		// project restricted subnets.
 		err = n.validateExternalSubnet(uplinkRoutes, projectRestrictedSubnets, listenAddressNet)
@@ -4423,22 +4436,13 @@ func (n *ovn) ForwardCreate(forward api.NetworkForwardsPost, clientType request.
 			return err
 		}
 
-		// Check the listen address subnet doesn't fall within any existing OVN network external subnets.
-		for _, externalSubnetUser := range externalSubnetsInUse {
-			// Check if usage is from our own network.
-			if externalSubnetUser.networkProject == n.project && externalSubnetUser.networkName == n.name {
-				// Skip checking conflict with our own network's subnet or SNAT address.
-				// But do not allow other conflict with other usage types within our own network.
-				if externalSubnetUser.usageType == subnetUsageNetwork || externalSubnetUser.usageType == subnetUsageNetworkSNAT {
-					continue
-				}
-			}
-
-			if SubnetContains(&externalSubnetUser.subnet, listenAddressNet) || SubnetContains(listenAddressNet, &externalSubnetUser.subnet) {
-				// This error is purposefully vague so that it doesn't reveal any names of
-				// resources potentially outside of the network's project.
-				return fmt.Errorf("Forward listen address %q overlaps with another network or NIC", listenAddressNet.String())
-			}
+		isValid, err := n.checkAddressNotInUse(listenAddressNet)
+		if err != nil {
+			return err
+		} else if !isValid {
+			// This error is purposefully vague so that it doesn't reveal any names of
+			// resources potentially outside of the network's project.
+			return fmt.Errorf("Forward listen address %q overlaps with another network or NIC", listenAddressNet.String())
 		}
 
 		client, err := openvswitch.NewOVN(n.state)
@@ -5088,3 +5092,29 @@ func (n *ovn) forPeers(f func(targetOVNNet *ovn) error) error {
 
 	return nil
 }
+
+// checkAddressNotInUse checks that a given network subnet does not fall within
+// any existing OVN network external subnets on the same uplink.
+func (n *ovn) checkAddressNotInUse(netip *net.IPNet) (bool, error) {
+	externalSubnetsInUse, err := n.getExternalSubnetInUse(n.config["network"])
+	if err != nil {
+		return false, err
+	}
+
+	for _, externalSubnetUser := range externalSubnetsInUse {
+		// Check if usage is from our own network.
+		if externalSubnetUser.networkProject == n.project && externalSubnetUser.networkName == n.name {
+			// Skip checking conflict with our own network's subnet, SNAT address, or volatile IP.
+			// But do not allow other conflict with other usage types within our own network.
+			if slices.Contains([]subnetUsageType{subnetUsageNetwork, subnetUsageNetworkSNAT, subnetUsageVolatileIP}, externalSubnetUser.usageType) {
+				continue
+			}
+		}
+
+		if SubnetContains(&externalSubnetUser.subnet, netip) || SubnetContains(netip, &externalSubnetUser.subnet) {
+			return false, nil
+		}
+	}
+
+	return true, nil
+}