Pseudo wire processing in a packet forwarding device

A method is provided for pseudo wire processing in a packet forwarding device in which a packet is processed based on whether the ports through which the packet is transmitted are real or pseudo wire ports. The inbound and outbound port information is encoded using a predefined range of index values such that index values falling within one range of values are used for passing real port information, and index values falling within another range of values are used for passing pseudo wire port information. The index values are used in a manner that facilitates efficient performance of pseudowire processing for the packets in the switch fabric component of the packet forwarding device.