Virtual overlay mobility using label based underlay network forwarding

Various techniques for migrating virtual entities via a label based underlay network is disclosed herein. In one embodiment, a method includes receiving packets associated with migrating a virtual machine from an originating network node of the underlay network to a target network node of the underlay network. The received packets individually include a label associated with a network path from the originating network node to the target network node in the underlay network. In response to receiving the packets, the method includes examining the labels of the packets to determine the network paths associated the labels and forwarding the packets following the determined network paths in the underlay network.