VRF is primarily implemented for better use of router and segregate network traffic. VRF works like a typical router with its unique routing table, table entries and routing protocols, and it works independently of the core router and other VRF created instances. VRF is similar to virtual routers but the latter uses only one routing table whereas VRF has multiple routing tables. VRF is also used to create VPN tunnels that are solely dedicated to a single client or network.

VRF is also referred to as a routing table that has multiple instances on a VPN power edge (PE) router.