A system and method in which network packets sharing a common destination are bundled into one or more larger packets. In one embodiment, an originating server, gateway, or other network device recognizes the presence of multiple, small IP packets having a common IP address. The network device according to the present invention is configured to concatenate or bundle two or more such small packets. The bundled packet as a whole is then given a new header, the bundle header, that includes the network destination address and information that informs the receiving protocol processing device that the packet is a bundled packet. The receiving device can then strip off the bundle header and process the component packets individually according to an existing protocol.