Methods, systems, and computer readable media for providing local application routing at a Diameter node are disclosed. One method includes receiving, at an ingress Diameter message processor associated with a Diameter signaling router (DSR), a Diameter message from a peer Diameter element. At the ingress Diameter message processor, application routing data is accessed to determine whether processing of the Diameter message by a Diameter application is required. In response to determining that Diameter application processing is required, the Diameter message is forwarded to a Diameter message processor hosting a Diameter application identified by the application routing data for processing. In response to determining that Diameter application processing is not required, the Diameter message is forwarded to an egress Diameter message processor associated with the DSR.