The present invention discloses a method for implementing an E-tree service and a provider edge device, and relates to the field of network communications technologies. A local PE device obtains leaf PE attribute information of a peer provider edge PE device; when the leaf PE attribute information of the peer PE device indicates that the peer PE device is a leaf PE device and the local PE device is a leaf PE device, the local PE device forbids a pseudo-wire connection between the local PE device and the peer PE device. The technical solution of the present invention implements effective isolation between leaf nodes supporting an E-Tree service and therefore implements the E-Tree service in a VPLS network.