Systems and methods of offloading multicast virtual network packet processing to a network interface card are provided. In an example implementation, a network interface card can route packets in a virtual network. The network interface card can be configured to receive a data packet having a multicast header for transmission to a plurality of destination virtual machines. The network interface card can retrieve a list of next hop destinations for the data packet. The network interface card can replicate the packet for each next hop destination. The network interface card can encapsulate each replicated packet with a unicast header that includes a next hop destination virtual IP address indicating the next hop destination and a source virtual IP address, and transmit the encapsulated packets.