Example methods and systems for connectivity check with service insertion have been disclosed. One example may comprise a computer system receiving a connectivity check packet that is injected for forwarding along a service path between a source virtualized computing instance and a destination virtualized computing instance. In response to detecting a connectivity issue associated with the service path, first report information identifying the first service virtualized computing instance and an observation that the connectivity check packet is dropped may be generated and sent. Otherwise, the connectivity check packet may be forwarded towards a second virtualized computing instance, being a next-hop on the service path, or the destination virtualized computing instance. Second report information identifying the first service virtualized computing instance and an observation that the connectivity check packet is forwarded may be generated and sent.