A method and system are disclosed for network adaptor optimization and interrupt reduction. The method may generate an immediate I/O interrupt notification to a host device driver in response to receiving data from a network. The method may also update an inbound buffer list based on the received data in the inbound buffer queue. Furthermore, the method may set the buffer state from an empty state to a primed state to indicate that the received data is available for processing. The method may also build an outbound buffer list based on outgoing data and add the outgoing data to an outbound buffer queue. Furthermore, the method may set a buffer state from an empty state to a primed state to indicate that the outgoing data is prepared for transmitting and signal a network adaptor with a notification signal.