This application discloses a packet transmission method and device. This application provides a method for forwarding a packet to a peer end to restore an SRH. A new SID with a bypass function is extended for an End.AD SID, so that when a local proxy node fails to find the SRH from a local cache, the new SID and control information used to indicate to restore the SRH are carried in the packet whose SRH needs to be restored. The packet is transmitted to a peer proxy node by using the new SID, to indicate the peer proxy node to replace the local proxy node to restore the SRH. In this way, the SRH corresponding to the packet can be restored through the peer proxy node, and then the packet can continue to be forwarded in a network by using the SRH.