The present application provides virtual shortest path tree establishment and processing methods and a path computation element, so as to improve a resource utilization rate in a process of establishing and processing a virtual shortest path tree. In a process of establishing the virtual shortest path tree, a cost of an established path from a root node (a destination node) to a leaf node is compared with a cost threshold, and a new path branch is added to the VSPT when the cost is less than the cost threshold. In a process of processing the virtual shortest path tree, a resource occupied by a path branch in the VSPT that does not belong to an optimal path is released after the optimal path is obtained.