Flow control systems and methods for multi-level buffering schemes

A system receives data in multiple streams from an upstream device. The system temporarily stores the data in a first buffer and asserts a forward flow control signal when a capacity of the first buffer exceeds a first threshold value. The system reads the data from the first buffer and selectively processes the data based on the forward flow control signal. The system temporarily stores the selectively processed data in a number of second buffers, generates a backward flow control signal when a capacity of one of the second buffers exceeds a second threshold value, and sends the backward flow control signal to the upstream device.