Abstract: Example methods are provided for a host to perform queue filter configuration for multicast packet handling in a software-defined networking (SDN) environment. One example method may comprise the host generating and sending a request to join an outer multicast group address to one or more multicast-enabled network devices; and configuring a queue filter based on the outer multicast group address. In response to detecting an ingress encapsulated multicast packet that includes an outer header addressed to the outer multicast group address, the host may assign the ingress encapsulated multicast packet to a particular NIC queue from the multiple NIC queues based on the queue filter; and retrieving, from the particular NIC queue, the ingress encapsulated multicast packet to generate and send a decapsulated multicast packet to a virtualized computing instance.