A method and system of loop detection for improving network performance and data integrity over a communications network are disclosed. A process is capable of transmitting a diagnostic packet stream from a source object to a destination object. The diagnostic packet stream, in one embodiment, is an IEEE 802.1ag continuity check message and is transported to a destination object periodically across a communications network. Upon receipt of a returning packet stream from the destination object, the process broadcasts loop detection at a port level in response to the comparison between the returning packet stream and the diagnostic packet stream.