Provided are a nickname and a transparent interconnection of lots of links (TRILL) packet processing method and apparatus. The method includes: a routing bridge (RB) in a TRILL network allocating a nickname to a terminal attached to the RB, the nickname being used for forwarding a packet in the TRILL network; and the RB sending the allocated nickname to the terminal, the terminal encapsulating, according to the nickname, a TRILL packet which uses a fine grained label to distinguish a multi-tenant service. By means of the solution, the problems of cumbersome design and low processing efficiency for implementing multi-tenancy in the related art caused by additional format conversion and label mapping processes required for implementing fine grained distinguishing of multiple tenants are solved, thereby achieving an effect that fine grained distinguishing of multi-tenant services is implemented by TRILL nickname based peer-to-peer forwarding, saving the additional processes and improving the processing efficiency.