Phase 1 design of DMVPN allowed mgre only on hub - thus no dynamic spoke to spoke tunnels.
In phase 2 and phase 3 design (with a small dependency on phase 2 or phase 3 image) spoke to spokes tunnels are formed - note that initial packet (phase 3 images) will flow through hub following routing table.
Thanks for your reply. As I read that there will be dynamic tunnel creation when spoke 1 wants to send traffic to spoke 2 , but when I did traceroute from spoke 1 router to spoke 2 router(network behind spoke 2), it gave me first hop as a hub and then spoke 2, which is just confusing me.
Provided that everything is working correctly and that you're using phase 2 or 3 design with phase 3 image (which is a typical case) the initial packets will go over connection to the hub because there is no better adjacany built.
A lot depend on what you're doing and how you're doing it. :-)
If you don't see NHRP entries populating or IPsec tunnel not built - open up a TAC case they will give you a better explanation based on your actual symptoms and configuration.
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