A packet transmission method and device are disclosed. A first pseudo wire (PW) is established between a first node and a second node. The first node obtains a first service packet, and performs SRv6 encapsulation on the first service packet to obtain a second service packet. The second service packet includes the first service packet and information about the first PW. The first node sends the second service packet to the second node through the first PW. After receiving the second service packet, the second node performs SRv6 decapsulation on the second service packet to obtain the first service packet. An ingress PE device can perform SRv6 encapsulation on a PW service, and encapsulate PW description information and a to-be-transmitted service packet into an actually sent service packet, and an egress PE device performs SRv6 decapsulation on the service packet received through the PW to obtain the to-be-transmitted service packet.