Instruction-Level Parallelism (ILP) refers to the ability of a computer's processor to execute multiple instructions simultaneously. This is achieved by breaking down instructions into smaller parts that can be processed at the same time, improving overall performance. Modern processors use techniques like pipelining and superscalar architecture to enhance ILP. To maximize ILP, compilers and processors analyze instruction dependencies and reorder instructions when possible. This allows for better utilization of CPU resources, leading to faster execution of programs. However, achieving high levels of ILP can be challenging due to factors like data hazards and control hazards that can limit parallel execution.