Packet switching is a digital networking communications method that groups all transmitted data – regardless of content, type, or structure – into suitably sized blocks, called packets. Packet switching features delivery of variable-bit-rate data streams (sequences of packets) over a shared network. When traversing network adapters, switches, routers and other network nodes, packets are buffered and queued, resulting in variable delay and throughput depending on the traffic load in the network.

Packet switching contrasts with another principal networking paradigm, circuit switching, a method which sets up a limited number of dedicated connections of constant bit rate and constant delay between nodes for exclusive use during the communication session. In case of traffic fees (as opposed to flat rate), for example in cellular communication services, circuit switching is characterized by a fee per time unit of connection time, even when no data is transferred, while packet switching is characterized by a fee per unit of information.