The following processes take place when R2 receives the frame on its Fa0/0 interface:

1. R2 examines the destination MAC address, which matches the MAC address of the receiving interface, FastEthernet 0/0. R2, therefore, copies the frame into its buffer.

2. R2 identifies the Ethernet Type field as 0x800, which means that the Ethernet frame contains an IPv4 packet in the data portion of the frame.

3. R2 de-encapsulates the Ethernet frame.

4. Because the destination IPv4 address of the packet does not match any of the interface addresses of R2, R2 consults its routing table to route this packet. R2 searches the routing table for the destination IPv4 address of the packet using the same process R1 used.

The routing table of R2 has a route to the 192.168.4.0/24 network, with a next-hop IPv4 address of 192.168.3.2 and an exit interface of Serial 0/0/0. Because the exit interface is not an Ethernet network, R2 does not have to resolve the next-hop IPv4 address with a destination MAC address.

5. The IPv4 packet is now encapsulated into a new data link frame and sent out the Serial 0/0/0 exit interface.

When the interface is a point-to-point (P2P) serial connection, the router encapsulates the IPv4 packet into the proper data link frame format used by the exit interface (HDLC, PPP, etc.). Because there are no MAC addresses on serial interfaces, R2 sets the data link destination address to an equivalent of a broadcast.

The animation in the figure illustrates how R2 forwards the packet to R3.