The invention provides a service data forwarding method based on a service function chain and an Overlay network system. The method comprises the following steps: a classifier generates an NSH according to forwarding path information of a service message, packages the NSH in an SFC control message, and forwards the SFC control message in an SFC domain based on the NSH; And the NVE packages the received SFC control message, an NSH is packaged in the VxLAN message, and the VxLAN message is sent to the NVE of the next hop through the VxLAN tunnel. According to the method, the Overlay network system and the SFC service providing method for providing the VDC service under the scene that the NVE node is separated from the SFF, so that the SFC flow forwarding processing does not depend on a network structure and topology, and the dynamic deployment migration of service function nodes of a data center is met; A new processing mechanism is defined for the classifier, the SFF and the NVE, and the SFC service can be correctly forwarded; NSH message processing is added in the SFC service, the implementation is simple, and hardware change is not needed.