VXLAN inter-domain communications and packet forwarding are supported between a virtual machine (VM) in a Virtual eXtensible Local Area Network (VXLAN) domain and an external client or another domain via a Layer Two (L2)/Layer Three (L3) switch, router, or network. A VXLAN Tunnel End Point (VTEP) coupled to the VM at a server and to the L2/L3 switch, router, or network and associated with the VXLAN domain is configured to implement a method for enabling the VXLAN inter-domain communications. The method includes receiving a packet at the (VTEP), replacing a source or destination Media Access Control (MAC) address in the packet if the packet is part of communications between a VXLAN domain for the VMs and an external component without encapsulating or decapsulating the packet, and forwarding the packet. Alternatively, the VTEP encapsulates or decapsulates an incoming packet if the packet is part of a VXLAN internal domain communications.