Layer 3 switches are key tools in modern networking, improving both efficiency and flexibility for enterprise networks. This post will explain. A Layer 3 switch (also called a multilayer switch) is a purpose-built hardware device that blends features of a traditional Layer 2 switch and a router. They facilitate efficient data transmission while offering several benefits for modern network architectures. At the same time, it acts as a router because it has IP routing. A Layer 3 switch combines switching and routing functions to efficiently manage traffic within and between VLANs on a LAN.