One embodiment of the present invention provides a system that facilitates forwarding of packets in an Ethernet passive optical network (EPON), which includes a central node and at least one remote node. During operation, the system assigns a logical link identifier (LLID) to a remote node, wherein an LLID corresponds to a logical link between the central node and a remote node. The system also associates an LLID with a port of a switch within the central node, wherein the switch has a number of ports; wherein a port may be a physical port or a virtual port; and wherein the number of ports on the switch are divided into network-side ports and user-side ports. Upon receiving a downstream packet from a network-side port, the system searches a mapping table to determine whether one or more field values of the downstream packet correspond to any LLIDs or ports. If the one or more field values correspond to an LLID, the system assigns the LLID to the downstream packet and transmits the downstream packet to a remote node.