A method for optimizing next-hop table space in a dual-homed network environment is provided and includes associating an Emulated Switch Internet Protocol (ES-IP) address and an Emulated Switch Media Access Control (ES-MAC) address with an Emulated Switch Identifier (ES-ID) of an emulated switch connected to a dual-homed host having a host IP address in a network environment, and populating a host route table with a mapping between the host IP address and the ES-IP address. The method further includes receiving an outgoing packet with the host IP address as a destination address, determining the ES-IP address corresponding to the host IP address, sending out an ARP request for a MAC address corresponding to the ES-IP address, receiving the ES-MAC address, determining the ES-ID corresponding to the ES-MAC address, encapsulating the outgoing packet with the ES-ID, and forwarding the packet.