Abstract: The present disclosure relates to a pre-5th-Generation (5G) or 5G communication system to be provided for supporting higher data rates Beyond 4th-Generation (4G) communication system such as Long Term Evolution (LTE). The present disclosure discloses systems and methods for forwarding data packets in a service function path of a network. The method includes receiving data packets associated with a first host device (111) and generating a modified source MAC address for the received data packets. The data packets are transmitted in the service function path (102) using the modified source MAC address. Further, the method involves forwarding the data packets received in the service function path to a second host device (113) based on the modified source MAC address. An embodiment of present disclosure eliminates need of special headers such as, SFC header and VLAN header for forwarding data packets on the SFP. Thus, reducing the packet size and ultimately traffic volume.