tunneling(tun´&l-ing) (n.) A technology that enables one network to send its data via another network's connections. Tunneling works by encapsulating a network protocol within packets carried by the second network. For example, Microsoft's PPTP technology enables organizations to use the Internet to transmit data across a VPN. It does this by embedding its own network protocol within the TCP/IP packets carried by the Internet.
Tunneling is also called encapsulation.