BGP does not handle packet fragmentation issues on IPv6 networks directly as it is not responsible for packet fragmentation. Packet fragmentation and reassembly are handled by the network layer protocol, IPv6 in this case, in order to overcome the Maximum Transmission Unit (MTU) limitations of different link layers.
However, BGP may indirectly contribute to packet fragmentation issues by determining the path for traffic and sending it through networks with different MTU values. If the size of the packet exceeds the MTU of certain network links, fragmentation may occur.
To address this issue, network administrators can enable Path MTU Discovery (PMTUD) on their routers. PMTUD allows routers along the path to detect the minimum MTU of each link and adjust the packet size accordingly, avoiding fragmentation.