An example method for facilitating multiple mobility domains with VLAN translation in a multi-tenant network environment is provided and includes detecting attachment of a first virtual machine on a first port and a second virtual machine on a second port of a network element, the first port and the second port being configured with a first mobility domain and a second mobility domain, respectively, and the first and second virtual machines being configured on a same original VLAN, determining whether the original VLAN falls within a pre-configured VLAN range, translating the original VLAN to a first VLAN on the first port corresponding to the first mobility domain and to a second VLAN on the second port corresponding to the second mobility domain, and segregating traffic on the original VLAN into the first VLAN and the second VLAN according to the respective mobility domains for per-port VLAN significance.