In one example, a management component executing on a single-chassis network device configures a virtual node with an abstract fabric interface having, as a destination address, identifiers of packet processors (e.g., PTFE-IDs) assigned to the virtual node on the other end of the abstract fabric interface. The management component of the single-chassis network device pre-creates an underlay network by using the fabric links at the packet processor. When the management component creates and connects an abstract fabric interface on the virtual nodes, the management component forms an overlay network and attaches the overlay network to the underlay network, e.g., by programming the forwarding plane packet processor, to connect the virtual nodes. However, users of the network device, external devices, and routing protocols will not view the abstract fabric interface as an overlay interface, but as a regular Ethernet interface (e.g., a Gigabit Ethernet interface).