Tunneling is a method of using an internetwork infrastructure to transfer data for one network over another network. The data to be transferred (or payload) can be the frames (or packets) of another protocol. Instead of sending a frame as it is produced by the originating node, the tunneling protocol encapsulates the frame in an additional header. The additional header provides routing information so that the encapsulated payload can traverse the intermediate internetwork.

The encapsulated packets are then routed between tunnel endpoints over the internetwork. The logical path through which the encapsulated packets travel through the internetwork is called a tunnel. Once the encapsulated frames reach their destination on the internetwork, the frame is decapsulated and forwarded to its final destination. Tunneling includes this entire process (encapsulation, transmission, and decapsulation of packets).

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