This disclosure discloses a method for implementing protection group overlay and a method for implementing Ethernet protection switching based on the protection group overlay. The method for implementing Ethernet protection switching based on the protection group overlay comprises: when the fault of TESI is detected by multiple IPG which protect the same TESI, only one IPG of the multiple nested IPGs performs protection switching. This disclosure further discloses a system for implementing Ethernet protection switching based on the protection group overlay, comprising a protection switching performing unit, configured to when a fault of a TESI is detected by multiple IPGs which protect the TESI, only one IPG of the multiple nested IPGs performing protection switching. Application of the method and system of this disclosure implements protection for key protected path through protection group overlay, and can achieve effects of saving network resource and increasing utilization rate of network resource.