An example method for determining an optimal forwarding path across a network having VxLAN gateways configured to implement both FGL networking and VxLAN capabilities can include learning RBridge nicknames associated with the VxLAN gateways in the network. Additionally, the method can include determining a path cost over the FGL network between each of the VxLAN gateways and a source node and a path cost over the VxLAN between each of the VxLAN gateways and a destination node. Further, the method can include determining an encapsulation overhead metric associated with the VxLAN and selecting one of the VxLAN gateways as an optimal VxLAN gateway. The selection can be based on the computed path costs over the FGL network and the VxLAN and the encapsulation overhead metric.