A method and a system for managing flat and routed clients in a cluster using single virtual IP (VIP) are provided herein. The method includes broadcasting an ARP request from a client to a cluster of nodes; monitoring the broadcasted ARP request at one of the nodes and ignoring the ARP request at all other nodes; in a case that the monitored ARP requests is associated with a different target VIP for same client IP, determining the client associated with the ARP request as a routed client, otherwise the client is determined as a flat client; applying at least one load balancing logic for assigning one of the nodes to the client associated with the ARP request, wherein both flat clients and routed clients are treated as independent clients counted separately; and notifying the client associated with the ARP of a MAC address of the assigned node.