The invention provides a method and system for packet processing, in which a router (or switch) is capable of quickly processing incoming packets, thus performing level 2, 3, and 4 routing and additional services, in real time. A system includes a packet processing engine (PPE), having elements for receiving packets, distinguishing header and payload information for those packets, outsourcing router decision-making to additional hardware resources such as a fast forwarding engine (FFE), and forwarding those packets. The PPE is synchronized to the FFE, so that the PPE can send and the FFE can receive packets at each one of a sequence of constant-duration time quanta. Similarly, the PPE can receive and the FFE can send packet routing information at each one of a sequence of similar time quanta. The PPE and the FFE have separate hardware so that their functions can be performed in parallel without contention for operating resources.