LDP, or Label Distribution Protocol, is a network protocol used to distribute labels in Multiprotocol Label Switching (MPLS) networks. It enables routers to share information about labels, which helps in making data forwarding decisions more efficient. By using LDP, routers can establish label-switched paths, allowing for faster data transmission and improved network performance. LDP operates by sending messages between routers to establish and maintain label bindings. This process ensures that each router knows which labels to use for specific data packets, facilitating seamless communication across the network. Overall, LDP plays a crucial role in enhancing the functionality of MPLS networks.