An example method for workload based service chain insertion in a network environment is provided and includes partitioning a service-path into fragments at a service controller, where the service-path comprises an ordered sequence of services to be provided to a packet associated with a workload in a network. The method also includes determining a location of service nodes providing the services; and provisioning the fragments at interfaces at a distributed virtual switch. The method could further include generating a plurality of service insertion points corresponding to the fragments at a service dispatcher. The service dispatcher can include a plurality of data plane components, and the service insertion points are generated at the data plane components.