The present invention extends to methods, systems, and computer program products for offloading packet processing for networking device virtualization. A host maintains rule set(s) for a virtual machine, and a physical network interface card (NIC) maintains flow table(s) for the virtual machine. The physical NIC receives and processes a network packet associated with the virtual machine. Processing the network packet includes the physical NIC comparing the network packet with the flow table(s) at the physical NIC. When the network packet matches with a flow in the flow table(s) at the physical NIC, the physical NIC performs an action on the network packet based on the matching flow. Alternatively, when the network packet does not match with a flow in the flow table(s) at the physical NIC, the physical NIC passes the network packet to the host partition for processing against the rule set(s).