Transmission fluid is a specialized lubricant used in vehicles to ensure smooth operation of the transmission system. It helps to cool and clean the components, reducing wear and tear. This fluid also enables the hydraulic pressure needed for gear shifting, making it essential for both automatic and manual transmissions. Regular maintenance of transmission fluid is crucial for vehicle performance. Over time, the fluid can become contaminated or break down, leading to potential transmission issues. Checking and replacing the fluid as recommended by the vehicle manufacturer can help prolong the life of the transmission and improve overall driving experience.