The present disclosure provide a packet processing method, a related apparatus, and an NVO3 network system. A first NVE receives a first packet sent by a first CE, where the first packet includes a MAC address of the first CE and a VLAN ID; the first NVE determines a VNI of the first CE according to an inbound interface of the first packet and the VLAN ID; the first NVE performs NVO3 encapsulation on the first packet to obtain an NVO3 encapsulated first packet, where the NVO3 encapsulated first packet includes the VNI of the first CE, and a source IP address in an NVO3 header of the NVO3 encapsulated first packet is a first shared VTEP IP address shared by the first NVE and a second NVE; and the first NVE forwards the NVO3 encapsulated first packet to a remote NVE.