A method for providing location independent dynamic port mirroring on distributed virtual switches is disclosed. A controller is provided to configure one or more virtual switches within a group of physical machines to appear as a set of distributed virtual switches. In response to the receipt of a data packet at a port of a physical machine, a determination is made whether or not the port has a monitor port located on the physical machine. If the port has a monitor port located on the same physical machine, a copy of the data packet is sent to the monitor port of the physical machine. If the port has a monitor port located on a different physical machine, a copy of the data packet along with an identification (ID) of the port and an ID of the monitor port are encapsulated, and the encapsulated information are sent to a controller.