Systems and Methods for switching optical data units (ODUs) and Internet Protocol (IP) packets as Ethernet packets in an optical transport network (OTN), IP, and Ethernet switching system. The OTN, IP, and Ethernet switching system may include an Ethernet fabric having a set of M Ethernet switches each including a set of N switch ports, and a set of N input/output (IO) devices each including a set of W IO ports, a set of M Ethernet ports, an IO side packet processor (IOSP), and a fabric side packet processor (FSP). Each Ethernet switch may establish switch queues. Each IO device may establish a set of M hierarchical virtual output queues each including a set of N ingress-IOSP queues and ingress-virtual output queues, a set of W egress-IOSP queues, a set of M ingress-FSP queues, and a set of N hierarchical virtual input queues each including a set of N egress-FSP queues and egress-virtual input queues.