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diff --git a/docs/report/introduction/methodology.rst b/docs/report/introduction/methodology.rst
index 506fa73b5b..b111fe51d3 100644
--- a/docs/report/introduction/methodology.rst
+++ b/docs/report/introduction/methodology.rst
@@ -6,6 +6,7 @@ Test Methodology
 
 .. toctree::
 
+    methodology_terminology
     methodology_vpp_forwarding_modes
     methodology_tunnel_encapsulations
     methodology_vpp_features
diff --git a/docs/report/introduction/methodology_terminology.rst b/docs/report/introduction/methodology_terminology.rst
new file mode 100644
index 0000000000..db76827a5a
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+++ b/docs/report/introduction/methodology_terminology.rst
@@ -0,0 +1,78 @@
+Terminology
+-----------
+
+- **Frame size**: size of an Ethernet Layer-2 frame on the wire, including
+  any VLAN tags (dot1q, dot1ad) and Ethernet FCS, but excluding Ethernet
+  preamble and inter-frame gap. Measured in Bytes.
+- **Packet size**: same as frame size, both terms used interchangeably.
+- **Inner L2 size**: for tunneled L2 frames only, size of an encapsulated
+  Ethernet Layer-2 frame, preceded with tunnel header, and followed by
+  tunnel trailer. Measured in Bytes.
+- **Inner IP size**: for tunneled IP packets only, size of an encapsulated
+  IPv4 or IPv6 packet, preceded with tunnel header, and followed by
+  tunnel trailer. Measured in Bytes.
+- **Device Under Test (DUT)**: In software networking, "device" denotes a
+  specific piece of software tasked with packet processing. Such device
+  is surrounded with other software components (such as operating system
+  kernel). It is not possible to run devices without also running the
+  other components, and hardware resources are shared between both. For
+  purposes of testing, the whole set of hardware and software components
+  is called "System Under Test" (SUT). As SUT is the part of the whole
+  test setup performance of which can be measured with :rfc:`2544`, using
+  SUT instead of :rfc:`2544` DUT. Device under test
+  (DUT) can be re-introduced when analyzing test results using whitebox
+  techniques, but this document sticks to blackbox testing.
+- **System Under Test (SUT)**: System under test (SUT) is a part of the
+  whole test setup whose performance is to be benchmarked. The complete
+  methodology contains other parts, whose performance is either already
+  established, or not affecting the benchmarking result.
+- **Bi-directional throughput tests**: involve packets/frames flowing in
+  both transmit and receive directions over every tested interface of
+  SUT/DUT. Packet flow metrics are measured per direction, and can be
+  reported as aggregate for both directions (i.e. throughput) and/or
+  separately for each measured direction (i.e. latency). In most cases
+  bi-directional tests use the same (symmetric) load in both directions.
+- **Uni-directional throughput tests**: involve packets/frames flowing in
+  only one direction, i.e. either transmit or receive direction, over
+  every tested interface of SUT/DUT. Packet flow metrics are measured
+  and are reported for measured direction.
+- **Packet Loss Ratio (PLR)**: ratio of packets received relative to packets
+  transmitted over the test trial duration, calculated using formula:
+  PLR = ( pkts_transmitted - pkts_received ) / pkts_transmitted.
+  For bi-directional throughput tests aggregate PLR is calculated based
+  on the aggregate number of packets transmitted and received.
+- **Packet Throughput Rate**: maximum packet offered load DUT/SUT forwards
+  within the specified Packet Loss Ratio (PLR). In many cases the rate
+  depends on the frame size processed by DUT/SUT. Hence packet
+  throughput rate MUST be quoted with specific frame size as received by
+  DUT/SUT during the measurement. For bi-directional tests, packet
+  throughput rate should be reported as aggregate for both directions.
+  Measured in packets-per-second (pps) or frames-per-second (fps),
+  equivalent metrics.
+- **Bandwidth Throughput Rate**: a secondary metric calculated from packet
+  throughput rate using formula: bw_rate = pkt_rate - (frame_size +
+  L1_overhead) - 8, where L1_overhead for Ethernet includes preamble (8
+  Bytes) and inter-frame gap (12 Bytes). For bi-directional tests,
+  bandwidth throughput rate should be reported as aggregate for both
+  directions. Expressed in bits-per-second (bps).
+- **Non Drop Rate (NDR)**: maximum packet/bandwith throughput rate sustained
+  by DUT/SUT at PLR equal zero (zero packet loss) specific to tested
+  frame size(s). MUST be quoted with specific packet size as received by
+  DUT/SUT during the measurement. Packet NDR measured in
+  packets-per-second (or fps), bandwidth NDR expressed in
+  bits-per-second (bps).
+- **Partial Drop Rate (PDR)**: maximum packet/bandwith throughput rate
+  sustained by DUT/SUT at PLR greater than zero (non-zero packet loss)
+  specific to tested frame size(s). MUST be quoted with specific packet
+  size as received by DUT/SUT during the measurement. Packet PDR
+  measured in packets-per-second (or fps), bandwidth PDR expressed in
+  bits-per-second (bps).
+- **Maximum Receive Rate (MRR)**: packet/bandwidth rate regardless of PLR
+  sustained by DUT/SUT under specified Maximum Transmit Rate (MTR)
+  packet load offered by traffic generator. MUST be quoted with both
+  specific packet size and MTR as received by DUT/SUT during the
+  measurement. Packet MRR measured in packets-per-second (or fps),
+  bandwidth MRR expressed in bits-per-second (bps).
+- **Trial**: a single measurement step.
+- **Trial duration**: amount of time over which packets are transmitted and
+  received in a single throughput measurement step.