A method for optimizing within subnet communication in a network environment is provided and includes receiving, at a Top-Of-Rack (ToR) switch, an advertisement from an attached host belonging to a subnet of a network environment, seeking a Media Access Control (MAC) address of a remote host in the subnet, looking up a host information database in a control plane of the ToR switch, and responding to the advertisement with the MAC address of the remote host. If the MAC address is not found, the ToR switch may not respond to the advertisement. The method can further include receiving, at the ToR switch from a remote ToR switch in the subnet, a host information of the remote host in the subnet, including an IP address and the MAC address of the remote host, the Layer 2 broadcast domain it belongs to, and storing the host information in the host information database.