An example method for distributed service chaining is provided and includes receiving a packet belonging to a service chain in a distributed virtual switch (DVS) network environment, the packet includes a network service header (NSH) indicating a service path identifier identifying the service chain. The packet is provided to a virtual Ethernet module (VEM) connected to an agentless service node (SN) providing an edge service such as a server load balancer (SLB). The VEM associates a service path identifier corresponding to the service chain with a local identifier such as a virtual local area network (VLAN). The agentless SN returns the packet to the VEM for forwarding on the VLAN. Because the VLAN corresponds exactly to the service path and service chain, the packet is forwarded directly to the next node in the service chain. This can enable agentless SNs to efficiently provide a service chain for network traffic.