This application provides a VXLAN packet processing method, a device, and a system. After determining that a data packet sent by a CE device is a BUM packet, a PE device encapsulates the BUM packet to generate a VXLAN packet including an ESI label and a VXLAN packet including a BUM traffic label. The VXLAN packet including the ESI label is sent to an active-active gateway, so that the gateway can block forwarding of traffic to the CE device by using an interface configured with an ESI, to avoid a loop between the PE device and the CE device. The VXLAN packet including the BUM traffic label is sent to a remote PE, to block forwarding of the VXLAN packet to the CE device by using a secondary DF interface, thereby avoiding a multi-packet problem.