IP hash is a method used in load balancing to distribute network traffic across multiple servers. It works by taking the IP address of a client and applying a hash function to it. This generates a unique value that determines which server will handle the client's request, ensuring that the same client is consistently directed to the same server. This technique helps maintain session persistence, which is important for applications that require users to stay connected to the same server for the duration of their session. By using IP hash, organizations can improve performance and reliability in their network infrastructure, especially in environments with high traffic.