Network applications and services on one end device can communicate with applications and services running on another end device. How is this data communicated across the network in an efficient way? The protocols of the OSI model network layer specify addressing and processes that enable transport layer data to be packaged and transported. The network layer encapsulation enables data to be passed to a destination within a network (or on another network) with minimum overhead. This chapter focuses on the role of the network layer. It examines how it divides networks into groups of hosts to manage the flow of data packets within a network. It also covers how communication between networks is facilitated. This communication between networks is called routing.