A method for a hypervisor supported by a source host to implement a port mirroring session in a virtualized computing environment includes receiving a packet passing through a first virtual port supported by the source host, wherein the packet is destined for a destination virtual machine on a destination host. The method also includes based on a first media access control (MAC) address of a first virtual network interface controller (VNIC) associated with a first monitoring virtual machine (VM), obtaining a first IP address associated with a first host that supports the first VNIC and the first monitoring VM, generating a port mirroring packet with the first IP address and a mirrored copy of the packet, wherein the port mirroring packet comprises a first Generic Network Virtualization Encapsulation (Geneve) base header, which includes the first MAC address, and transmitting the port mirroring packet to the first host.