A method and system for machine type communication (MTC) service management using network function virtualization (NFV) is disclosed. In an embodiment, a method for a machine type communication (MTC) service management using a virtual network function (VNF) includes receiving, by a virtual serving gateway (v-s-SGW), a request for an MTC service from a MTC device through a radio node associated with the MTC device; sending, by the v-s-SGW, an authentication request to an MTC server to authenticate the MTC device; receiving, by the v-s-SGW, an authentication response from the MTC server; and establishing, by the v-s-SGW, an MTC bearer between the v-s-SGW and the radio node if the authentication is successful; wherein the v-s-SGW comprises a virtual connection management (v-CM) and a serving gateway (s-SGW).