An example method for routing IPv6 link-local addresses in a network environment is provided and includes receiving a packet at a first switch from an attached first host in a virtual local area network (VLAN) associated with a virtual routing and forwarding (VRF) instance of a network environment, where the packet is destined to an Internet Protocol version 6 (IPv6) link-local address of a remote second host in the VLAN, and routing the packet at Layer 3 to a second switch, to which the second host is attached. In specific embodiments, the second switch routes the packet at Layer 3 to the second host if the VRF does not include duplicate IPv6 link-local addresses corresponding to the IPv6 link-local address of the second host; the second switch bridges the packet at Layer 2 to the second host if the VRF includes at least one duplicate IPv6 link-local address.