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Multi Protocol Label Switching (MPLS)

Last Updated : 10 Oct, 2025
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Multi-Protocol Label Switching (MPLS) is an advanced packet-forwarding technique used in modern networks. Instead of making routers look into complex Layer 3 routing tables for every IP packet, MPLS uses labels for forwarding decisions. These labels create pre-defined, efficient paths across the network, which enhances speed, scalability and traffic management.

mpls_network
Multi Protocol Label Switching

Note: MPLS lies between Layer 2 (Data Link) and Layer 3 (Network Layer) of the OSI model, which is why it is often referred to as a Layer 2.5 protocol.

Why MPLS

  • Traditional IP routing involves a long lookup process in routing tables.
  • MPLS simplifies forwarding by assigning a short fixed-length label to each packet.
  • This ensures: Faster packet delivery, better support for Quality of Service (QoS) & easier traffic engineering and Virtual Private Networks (VPNs).

MPLS Header

The MPLS header is 32 bits long and is inserted between the Layer 2 and Layer 3 headers. It contains the following fields:

mpls_header
MPLS Header
FieldSizeDescription
Label20 bitsIdentifier used to make forwarding decisions (range: 0 to 2²⁰ – 1).
Experimental (Exp)3 bitsUsed for Quality of Service (QoS) and traffic prioritization.
Bottom of Stack (S)1 bitIndicates whether this label is the last in the stack (1 = last label).
Time to Live (TTL)8 bitsPrevents loops; decrements by 1 at every hop.

Note: Multiple labels can be stacked to form a label stack, enabling hierarchical routing.

Key Terminologies in MPLS

  • Provider Edge (PE) Router: Router at the edge of the MPLS provider’s network; adds/removes labels from packets.
  • Customer Edge (CE) Router: Router at the customer’s network edge that communicates with PE routers.
  • Label Switch Router (LSR): Router inside the MPLS core that understands and processes labels.
  • Ingress LSR: First router that receives the packet from CE and pushes (adds) the MPLS header.
  • Intermediate LSR: Routers that swap labels as packets move across the MPLS path.
  • Egress LSR: The last router in the MPLS domain that pops (removes) the MPLS header before sending the packet to the CE.
  • Push, Pop, Swap: Push -> Add a label, Pop -> Remove a label. & Swap -> Replace an existing label with a new one.

Working of MPLS (Forwarding Process)

  • Ingress Stage (Push): CE sends an IP packet to the PE (Ingress LSR). Ingress PE assigns a label based on the destination and attaches an MPLS header.
  • Core Stage (Swap): Intermediate LSRs forward the packet based only on the label. They swap the label with a new one as defined in their Label Forwarding Information Base (LFIB).
  • Egress Stage (Pop): The Egress PE removes the MPLS header and forwards the original IP packet to the CE router.

Note: Labels are distributed using the Label Distribution Protocol (LDP).

MPLS and VPN

  • MPLS can separate traffic of different customers similar to VPNs.
  • Unlike regular VPNs, MPLS does not encrypt data.
  • Instead, it ensures traffic isolation by keeping each customer’s traffic within its label-switched path (LSP).

Read more about Difference between VPN and MPLS

Advantages of MPLS

  • Faster packet forwarding (label-based).
  • Supports multiple protocols (hence “multi-protocol”).
  • Enables Traffic Engineering (efficient use of resources).
  • Facilitates Quality of Service (QoS).
  • Provides scalable support for Layer 3 VPNs.
  • Reliable with loop prevention (via TTL).

Disadvantages of MPLS

  • Expensive to implement compared to IP routing.
  • Complexity in configuration and management.
  • Security is weaker than encrypted VPN solutions.
  • Less suitable for small-scale networks.
  • Multiprotocol Label Switching (MPLS) Routing.

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