Multiprotocol Label Switching (MPLS) is a switching technology. MPLS-TP is a progressive version of MPLS in the field of packet switched data network. MPLS-TP is a high-end technology which implements network methodologies in a transport layer. For managing virtual private network(VPN) services, MPLS is of developing enthusiasm to the service providers (SPs) and furthermore to VPN customers. MPLS-enabled routers allot a few labels to the packets, and in view of these allocated labels it produces sending decisions. The prime expectation after the MPLS technology is to eliminate the need of OSI model data link layered
(layer-2) technology i.e. frame relay, Ethernet, asynchronous transfer mode (ATM). This paper gives data about the components of Multi-Protocol Label Switching (MPLS), correlation of MPLS with traditional Routing and Packet Switching, MPLS label format and MPLS operation.