Time Division Multiplexing (TDM) is a technique used in telecommunications to transmit multiple signals over a single communication channel. It works by dividing the time available on the channel into distinct time slots, with each signal assigned a specific slot. This allows multiple users to share the same medium without interference, as each signal is sent in its designated time frame. TDM is commonly used in digital communication systems, such as telephone networks and data transmission. By efficiently utilizing bandwidth, TDM helps improve the overall capacity of the system, ensuring that multiple users can communicate simultaneously without degrading the quality of the signals.