Techniques for sending data during handover with Layer 2 tunneling are described. In one design, a user equipment (UE) sends first Layer 2 packets to a source base station prior to handover to a target base station. The UE sends at least one second Layer 2 packet to the target base station, which identifies the second Layer 2 packet(s) as being intended for the source base station and thus forwards the second Layer 2 packet(s) to the source base station via a Layer 2 tunnel. The UE sends third Layer 2 packets to the target base station after the handover. The target base station processes the third Layer 2 packets to obtain IP packets and sends the IP packets to a serving gateway after a trigger condition, which may be defined to achieve in-order delivery of IP packets from the source and target base stations to the serving gateway.