The invention solves the problem of overloading intermediate routers with state information as the number of multicast groups increases to millions of groups. The invention places multicast delivery tree information in the header of an encapsulated multicast packet, thereby relieving the routers from maintaining any state information about the multicast groups. The encapsulated packet is referred to as a small group multicast packet, or SGM packet. Routers which are neither branch points of the delivery tree nor destination routers will also need to do no additional forwarding processing other than that needed for standard unicast forwarding. A protocol designation field in the Layer 3 header informs the router that the packet is a SGM packet, and that the router is therefore instructed to parse the packet for route information. The router parses the SGM packet header and determines the next hop address of routers in the multicast delivery tree. The standard unicast forwarding tables are then consulted to determine the next packet destination addresses, and the router then rewrites the SGM packet and routes it to the next hop router. The routing tables also instruct the router as to which outbound port to route the packet.