Port forwarding is a networking technique that allows external devices to access services on a private network. It works by directing incoming internet traffic from a specific port on a router to a designated device within the local network, such as a computer or a game console. This is useful for applications like online gaming, remote desktop access, or hosting a website. To set up port forwarding, users typically log into their router's settings and specify which port to forward and to which device's local IP address the traffic should be sent. This process helps ensure that the right data reaches the intended device, improving connectivity and performance for various online activities.