In one embodiment, a subnet-scoped multicast packet is received on an interface of a forwarding device that is connected to a host device of a subnet of a forwarding domain. The received subnet-scoped multicast packet is transmitted from one or more other interfaces of the forwarding device that are connected to one or more other host devices of the subnet. The received subnet-scoped multicast packet is also encapsulated with an additional header. The encapsulated subnet-scoped multicast packet is forwarded from the forwarding device to an intermediate router which routes the encapsulated subnet-scoped multicast packet to one or more other forwarding devices configured to decapsulate the encapsulated subnet-scoped multicast packet and transmit the decapsulated subnet-scoped multicast packet to one or more connected host devices of an additional portion of the subnet.