A bridge-based cellular Ethernet system and a handover processing method therefore are provided. In the bridge-based cellular Ethernet system, an HLR manages configuration information about network entities, and a plurality of Base Station Bridges (BSBs) are connected to a plurality of Base Stations (BSs), each BSB including a layer 2 switch, and a plurality of SCBs connected to part of the BSBs under the SCBs. Each SCB includes a layer 2 switch forming a core network, and SCB monitors the signal power of a Mobile Node (MN) within its service area, determines whether the MN is to move to another site, selects a new SCB to which the MN is to move, sends necessary path information to associated SCBs and the HLR, for setting of the path information in the associated SCBs and the HLR, and commands a handover to the MN.