A system for supporting multicast on a virtual network, comprising: a computer comprising a processor and a memory having computer-executable instructions stored thereupon which, when executed by the processor, cause the computer to: at a node hosting a source virtual machine of the virtual network: receive a multicast data packet from an application of the source virtual machine, the multicast data packet including a multicast destination IP address and a multicast destination media access control, MAC, address; apply a connectivity policy to the multicast data packet, the policy including a multicast configuration matching the multicast destination IP address and being at least one or more of a transportation, network, and/or data, in particular Ethernet, layer policy, in particular a security policy, wherein application of the policy creates a replica of the multicast data packet for each of a plurality of members and adds customer address metadata to each replica; for each particular replica of the multicast data packet: bypass application of the connectivity policy based on the customer address metadata; at least one of translating the multicast destination media access control address to a unicast destination media access control address or modifying the multicast destination IP address to a pre-defined unicast IP address; encapsulating the at least one of translated unicast destination media access control address or pre-defined unicast IP address with underlay unicast IP headers with the destination of a host machine where each particular replica resides to form a unicast data packet for the particular replica; and sending the unicast data packet for each particular replica. a computer comprising a processor and a memory having computer-executable instructions stored thereupon which, when executed by the processor, cause the computer to: at a node hosting a source virtual machine of the virtual network: receive a multicast data packet from an application of the source virtual machine, the multicast data packet including a multicast destination IP address and a multicast destination media access control, MAC, address; apply a connectivity policy to the multicast data packet, the policy including a multicast configuration matching the multicast destination IP address and being at least one or more of a transportation, network, and/or data, in particular Ethernet, layer policy, in particular a security policy, wherein application of the policy creates a replica of the multicast data packet for each of a plurality of members and adds customer address metadata to each replica; for each particular replica of the multicast data packet: bypass application of the connectivity policy based on the customer address metadata; at least one of translating the multicast destination media access control address to a unicast destination media access control address or modifying the multicast destination IP address to a pre-defined unicast IP address; encapsulating the at least one of translated unicast destination media access control address or pre-defined unicast IP address with underlay unicast IP headers with the destination of a host machine where each particular replica resides to form a unicast data packet for the particular replica; and sending the unicast data packet for each particular replica. receive a multicast data packet from an application of the source virtual machine, the multicast data packet including a multicast destination IP address and a multicast destination media access control, MAC, address; apply a connectivity policy to the multicast data packet, the policy including a multicast configuration matching the multicast destination IP address and being at least one or more of a transportation, network, and/or data, in particular Ethernet, layer policy, in particular a security policy, wherein application of the policy creates a replica of the multicast data packet for each of a plurality of members and adds customer address metadata to each replica; for each particular replica of the multicast data packet: bypass application of the connectivity policy based on the customer address metadata; at least one of translating the multicast destination media access control address to a unicast destination media access control address or modifying the multicast destination IP address to a pre-defined unicast IP address; encapsulating the at least one of translated unicast destination media access control address or pre-defined unicast IP address with underlay unicast IP headers with the destination of a host machine where each particular replica resides to form a unicast data packet for the particular replica; and sending the unicast data packet for each particular replica. at least one of translating the multicast destination media access control address to a unicast destination media access control address or modifying the multicast destination IP address to a pre-defined unicast IP address; encapsulating the at least one of translated unicast destination media access control address or pre-defined unicast IP address with underlay unicast IP headers with the destination of a host machine where each particular replica resides to form a unicast data packet for the particular replica; and sending the unicast data packet for each particular replica.