The present invention discloses user equipment and network side equipment, and a method of determining a processing mode for a data packet. The user equipment comprises: a determination module, configured to determine a processing mode for a data packet; and a first transmission module, configured to process, according to the determined processing mode, the data packet, and transmit to network side equipment the data packet. The present invention determines an encapsulation format of the data packet by determining the processing mode for the data packet, increasing a resource utilization rate of an air interface.