A data packet forwarding method and a network device, where the method includes, receiving a data packet, obtaining a local physical address and a destination physical address of the data packet when the entry matching the data packet does not exist in the first match table, determining whether the local physical address is the same as the destination physical address, searching a second match table for an entry in which a physical address matches the destination physical address when the local physical address is different from the destination physical address, generating a layer 2 forwarding entry according to the entry matching the destination physical address, and forwarding the data packet according to the layer 2 forwarding entry. Therefore, processing efficiency of the new data packet and network performance are improved.