diff --git a/netplan_cli/cli/commands/apply.py b/netplan_cli/cli/commands/apply.py
index 8bf8a9477..066f4968c 100644
--- a/netplan_cli/cli/commands/apply.py
+++ b/netplan_cli/cli/commands/apply.py
@@ -176,9 +176,12 @@ def command_apply(self, run_generate=True, sync=False, exit_on_error=True, state
         else:
             logging.debug('no netplan generated networkd configuration exists')
 
+        loopback_connection = ''
         if restart_nm:
             logging.debug('netplan generated NM configuration changed, restarting NM')
             if utils.nm_running():
+                if 'lo' in nm_ifaces:
+                    loopback_connection = utils.nm_get_connection_for_interface('lo')
                 # restarting NM does not cause new config to be applied, need to shut down devices first
                 for device in devices:
                     if device not in nm_ifaces:
@@ -286,12 +289,20 @@ def command_apply(self, run_generate=True, sync=False, exit_on_error=True, state
         if restart_nm:
             # Flush all IP addresses of NM managed interfaces, to avoid NM creating
             # new, non netplan-* connection profiles, using the existing IPs.
-            for iface in utils.nm_interfaces(restart_nm_glob, devices):
+            nm_interfaces = utils.nm_interfaces(restart_nm_glob, devices)
+            for iface in nm_interfaces:
                 utils.ip_addr_flush(iface)
             # clear NM state, especially the [device].managed=true config, as that might have been
             # re-set via an udev rule setting "NM_UNMANAGED=1"
             shutil.rmtree('/run/NetworkManager/devices', ignore_errors=True)
             utils.systemctl_network_manager('start', sync=sync)
+
+            # If 'lo' is in the nm_interfaces set we flushed it's IPs (see above) and disconnected it.
+            # NM will not bring it back automatically after restarting and we need to do that manually.
+            # For that, we need NM up and ready to accept commands
+            if 'lo' in nm_interfaces:
+                sync = True
+
             if sync:
                 # 'nmcli' could be /usr/bin/nmcli or
                 # /snap/bin/nmcli -> /snap/bin/network-manager.nmcli
@@ -309,6 +320,13 @@ def command_apply(self, run_generate=True, sync=False, exit_on_error=True, state
                         break
                     time.sleep(0.5)
 
+            # If "lo" is managed by NM through Netplan, apply will flush its addresses and disconnect it.
+            # NM will not bring it back automatically.
+            # This is a possible scenario with netplan-everywhere. If a user tries to change the 'lo'
+            # connection with nmcli for example, NM will create a persistent nmconnection file and emit a YAML for it.
+            if 'lo' in nm_interfaces and loopback_connection:
+                utils.nm_bring_interface_up(loopback_connection)
+
     @staticmethod
     def is_composite_member(composites, phy):
         """
diff --git a/netplan_cli/cli/utils.py b/netplan_cli/cli/utils.py
index d0a85dffc..a5f60c979 100644
--- a/netplan_cli/cli/utils.py
+++ b/netplan_cli/cli/utils.py
@@ -78,6 +78,20 @@ def nm_interfaces(paths, devices):
     return interfaces
 
 
+def nm_get_connection_for_interface(interface: str) -> str:
+    output = nmcli_out(['-m', 'tabular', '-f', 'GENERAL.CONNECTION', 'device', 'show', interface])
+    lines = output.strip().split('\n')
+    connection = lines[1]
+    return connection if connection != '--' else ''
+
+
+def nm_bring_interface_up(connection: str) -> None:  # pragma: nocover (must be covered by NM autopkgtests)
+    try:
+        nmcli(['connection', 'up', connection])
+    except subprocess.CalledProcessError:
+        pass
+
+
 def systemctl_network_manager(action, sync=False):
     # If the network-manager snap is installed use its service
     # name rather than the one of the deb packaged NetworkManager
diff --git a/tests/test_utils.py b/tests/test_utils.py
index ec57087e6..b2a1657e1 100644
--- a/tests/test_utils.py
+++ b/tests/test_utils.py
@@ -371,3 +371,15 @@ def test_ip_addr_flush(self):
         self.assertEqual(self.mock_cmd.calls(), [
             ['ip', 'addr', 'flush', 'eth42']
         ])
+
+    @patch('netplan_cli.cli.utils.nmcli_out')
+    def test_nm_get_connection_for_interface(self, nmcli):
+        nmcli.return_value = 'CONNECTION \nlo         \n'
+        out = utils.nm_get_connection_for_interface('lo')
+        self.assertEqual(out, 'lo')
+
+    @patch('netplan_cli.cli.utils.nmcli_out')
+    def test_nm_get_connection_for_interface_no_connection(self, nmcli):
+        nmcli.return_value = 'CONNECTION \n--         \n'
+        out = utils.nm_get_connection_for_interface('asd0')
+        self.assertEqual(out, '')