Embodiments of the application describe a packet processing method and a router. The method includes: receiving, by an input line card, at least one packet; obtaining, by the input line card, information about an available first buffer block in a third buffer module, where the third buffer module is a first buffer module that includes an available first buffer block; allocating, by the input line card, a third buffer block to each of the at least one packet based on at least one buffer information block stored in the input line card and the information about an available first buffer block; and buffering, by the input line card, each packet into the third buffer block. Distributed packet buffering can be implemented by using the method.