A PE and a method of forwarding packet are provided. According to an example of the method, when receiving a packet, the PE may determine a vPort associated to a port through which the packet is received. When a forwarding entry adding condition is satisfied, the PE may add a first forwarding entry in a forwarding table by recording the first vPort as an egress port, a source MAC address of the packet as a MAC address and an VLAN identifier of the VLAN associated with the first vPort as a VLAN identifier. Subsequently, the PE may search the forwarding table for a second forwarding entry matching the destination MAC address of the packet and the VLAN to which the packet belongs. The PE may search a port associating relationship table for a port associated to a second vPort in the second forwarding entry to forward the packet.