Layer 3 EtherChannel

1. Introduction

In the previous lesson, you bundled multiple switch ports into one logical link with Layer 2 EtherChannel.

Now we move on to Layer 3 EtherChannel. The idea is the same: combine several physical interfaces into one Port-Channel. The difference is that the Port-Channel is treated as a routed interface and can be assigned an IP address instead of functioning as a switchport.

Cisco switches connected before Layer 3 EtherChannel
Figure 1 – Two switches linked before Layer 3 EtherChannel.

This type of configuration is supported on multilayer switches and routers. In Cisco’s three-tier design (Access → Distribution → Core), it is commonly used between the Distribution and Core layers to ensure reliable, high-bandwidth interconnections.

In this lab, two multilayer switches (SW1 and SW2) will bundle interfaces F0/1 and F0/2 into Port-Channel 1.

Layer 3 EtherChannel port-channel with IP addresses
Figure 2 – Port-Channel Setup

Each Port-Channel interface will then be assigned an IP address from the 192.168.1.0/24 network.

Let’s dive into the configuration.

2. Layer 3 EtherChannel Configuration

Step 1 – Enable IP Routing

Since we are working with multilayer switches, we must first activate the global routing function.

By default, these devices can operate only at Layer 2. With the command ip routing, we tell the switch to forward packets based on IP addresses.

SW1# configure terminal
Enter configuration commands, one per line.  End with CNTL/Z.
SW1(config)# ip routing

SW2# configure terminal
Enter configuration commands, one per line.  End with CNTL/Z.
SW2(config)# ip routing

At this point, both switches are ready to handle Layer 3 interfaces. The next step is to convert the physical ports that will participate in the EtherChannel into routed interfaces.

Step 2 – Convert Interfaces to Routed Ports and Create the Port-Channel

We select interfaces F0/1 and F0/2 on each switch.

  • The command no switchport changes them from Layer 2 switchports to Layer 3 routed ports.
  • Then, with channel-group 1 mode on, we bundle them into Port-Channel 1.

Here we use mode on, which creates a static EtherChannel without negotiation protocols (no PAgP or LACP). This is simple and reliable for a lab environment.

SW1(config)# interface range f0/1-2
SW1(config-if-range)# no switchport
SW1(config-if-range)# channel-group 1 mode on
Creating a port-channel interface Port-channel 1

SW2(config)# interface range f0/1-2
SW2(config-if-range)# no switchport
SW2(config-if-range)# channel-group 1 mode on
Creating a port-channel interface Port-channel 1

At this stage, the two physical interfaces are grouped, and the system has automatically created the logical interface Port-Channel 1.

Step 3 – Assign IP Addresses to the Port-Channel Interface

Now that the port-channel exists, we configure it as a routed interface. This means applying an IP address directly to the logical Port-Channel interface rather than the physical ones.

  • On SW1 we use 192.168.1.1/24.
  • On SW2 we use 192.168.1.2/24.
SW1(config)# interface port-channel 1
SW1(config-if)# ip address 192.168.1.1 255.255.255.0
SW1(config-if)# no shutdown

SW2(config)# interface port-channel 1
SW2(config-if)# ip address 192.168.1.2 255.255.255.0
SW2(config-if)# no shutdown

At this point, both switches are connected through a Layer 3 EtherChannel. The logical Port-Channel interface carries the IP address, while the physical interfaces F0/1 and F0/2 work together in parallel, providing redundancy and additional bandwidth.

3. Verification

After completing the configuration, it is important to confirm that the Layer 3 EtherChannel is active and functioning correctly.

Check EtherChannel Summary

Use the show etherchannel summary command to get an overview of the EtherChannel:

SW1# show etherchannel summary
Flags:  D - down        P - in port-channel
        I - stand-alone s - suspended
        H - Hot-standby (LACP only)
        R - Layer3      S - Layer2
        U - in use      f - failed to allocate aggregator
        u - unsuitable for bundling
        w - waiting to be aggregated
        d - default port


Number of channel-groups in use: 1
Number of aggregators:           1

Group  Port-channel  Protocol    Ports
------+-------------+-----------+----------------------------------------------

1      Po1(RU)           -      Fa0/1(P) Fa0/2(P) 

Explanation

  • RU → The Port-Channel is Routed (R) and Up (U).
  • P → Interfaces F0/1 and F0/2 are successfully bundled in the EtherChannel.

This confirms that the EtherChannel on SW1 is working properly.

The same check on SW2 gives an identical result:

SW2# show etherchannel summary
Flags:  D - down        P - in port-channel
        I - stand-alone s - suspended
        H - Hot-standby (LACP only)
        R - Layer3      S - Layer2
        U - in use      f - failed to allocate aggregator
        u - unsuitable for bundling
        w - waiting to be aggregated
        d - default port


Number of channel-groups in use: 1
Number of aggregators:           1

Group  Port-channel  Protocol    Ports
------+-------------+-----------+----------------------------------------------

1      Po1(RU)           -      Fa0/1(P) Fa0/2(P) 

Both outputs confirm that Port-Channel 1 is operational and the two interfaces are correctly aggregated.

Check IP Interfaces

Now let’s verify the IP configuration with show ip interface brief.

SW1# show ip int brief
Interface              IP-Address      OK? Method Status                Protocol 
Port-channel1          192.168.1.1     YES manual up                    up 
FastEthernet0/1        unassigned      YES unset  up                    up 
FastEthernet0/2        unassigned      YES unset  up                    up 

SW2# show ip int brief
Interface              IP-Address      OK? Method Status                Protocol 
Port-channel1          192.168.1.2     YES manual up                    up 
FastEthernet0/1        unassigned      YES unset  up                    up 
FastEthernet0/2        unassigned      YES unset  up                    up 

Both Port-Channel interfaces are up with the correct IP addresses, while the physical interfaces are unassigned (as expected).

Ping Test

Since we want to confirm that the Layer 3 EtherChannel is working as expected, we perform a connectivity test using a ping.

Layer 3 EtherChannel ping test between Cisco switches
Figure 3 – Ping test across the Layer 3 EtherChannel.

We send a ping from SW1 to the IP address of the Layer 3 EtherChannel interface on SW2 (192.168.1.2):

SW1# ping 192.168.1.2

Type escape sequence to abort.
Sending 5, 100-byte ICMP Echos to 192.168.1.2, timeout is 2 seconds:
!!!!!
Success rate is 100 percent (5/5), round-trip min/avg/max = 0/0/0 ms

The ping is successful, confirming that the Layer 3 EtherChannel is up and operational.

4. Conclusion

Layer 3 EtherChannel combines multiple physical interfaces into a single logical routed interface.

Unlike Layer 2 EtherChannel, which works as a switchport, the Layer 3 Port-Channel is assigned an IP address and can participate in routing.

Configuration Summary

Step 1 – Enable IP Routing
SW1(config)# ip routing
SW2(config)# ip routing

Step 2 – Convert Interfaces & Create Port-Channel
SW1(config)# interface range f0/1-2
SW1(config-if-range)# no switchport
SW1(config-if-range)# channel-group 1 mode on

SW2(config)# interface range f0/1-2
SW2(config-if-range)# no switchport
SW2(config-if-range)# channel-group 1 mode on

Step 3 – Assign IP Address to Port-Channel
SW1(config)# interface port-channel 1
SW1(config-if)# ip address 192.168.1.1 255.255.255.0
SW1(config-if)# no shutdown

SW2(config)# interface port-channel 1
SW2(config-if)# ip address 192.168.1.2 255.255.255.0
SW2(config-if)# no shutdown