Method and system for configuring a port of a network device are provided. One method for a port of a network device communicating with another network device port includes reading manufacturing, license and user provided port configuration data by a processor of the network device; obtaining capabilities information for the port by the processor of the network device from an external pluggable media device; setting port configuration data based on the capabilities information obtained from the external pluggable media; executing auto-negotiation on the port, when enabled and obtaining configuration data from the other port; determining that enough data is available to set port configuration; attempting to configure the port by using a highest permissible bandwidth configuration when enough data is available to set the port configuration; and setting port configuration based on the attempt to configure the port to operate when a link connected to the port is operational.