MPLS L2VPN is used to transparently pass users’ L2 data through MPLS network, with the common implementation model of Martini L2VPN by using LDP as the signaling. In spite of its wide application, the configuration of its capacity expansion is cumbersome and the cross-domain problem is insolvable. Therefore, based on the label swapping technology of MPLS, this paper adopts kompella-based approach for L2VPN implementation and mainly focuses on packet forwarding and controlling. Firstly, it does not make direct CE connections, but partitions different VPN in the whole SP (Service Provider) and gives serial numbers of CE within the VPN. Moreover, it also establishes the VC (virtual circuit) channel between the two PE and uses label distribution and calculation for mutual information. In this respect, it can not only provide effective supports for capacity expansion, but also solves the cross-domain problem.