A Packet Core Function (PCF) (55) and a method of automatic Packet Data Service Node (PDSN) Discovery, Monitoring, and Failure Handover in a packet-switched network that includes a plurality of PDSNs (57). The PDSNs multicast PDSN profile information that includes their ID, status, congestion level, and routing table information. The PCF automatically builds and updates a PDSN database (61) from the profile information it receives. If the PCF fails to receive a predefined number of multicast messages, or fails to receive responses to polling messages from a particular PDSN, the PCF concludes that the PDSN has failed. If a failure is detected, the PCF selects one or more new PDSNs to handle the packet data sessions that were being handled by the failed PDSN. The PCF then hands over the active sessions to the selected PDSN(s).