Method and system for processing frames in a Fibre Channel network is provided. The method includes receiving a frame at a receive port; determining if a translation cache is enabled; determining if there is a match between a received frame header and an entry in the translation cache; generating an encapsulation signal, a de-encapsulation signal, a translation signal or a routing signal; removing data words in the received frame header, if de-encapsulation signal is set; translating the received frame header, if the translation signal is set; encapsulating the frame with an encapsulation header, if the encapsulation signal is set; and routing the frame using translation cache routing if the routing signal is set.