Provided herein a network virtualization apparatus and method, the apparatus including a tunnel manager configured to collect tunnel end points information within a network, and to connect each tunnel end point with a tunnel based on the tunnel end point information collected; a tunnel packet end point configured to receive a tunnel packet and process the packet such that an L2 switching may be performed, and to transmit the packet to a domain VSI (virtual switching instance); the domain VSI configured to perform the L2 switching on the processed packet, and to transmit the packet to a tunnel packet generator; and the tunnel packet generator configured to add a tunnel header to the packet for which the L2 switching has been performed to generate a new tunnel packet, and to transmit the new tunnel packet.