Token Ring as defined in IEEE 802.5 is originated from the IBM Token Ring LAN technologies. Both are based on the Token Passing technologies. While them differ in minor ways but generally compatible with each other.

Token-passing networks move a small frame, called a token, around the network. Possession of the token grants the right to transmit. If a node receiving the token has no information to send, it seizes the token, alters 1 bit of the token (which turns the token into a start-of-frame sequence), appends the information that it wants to transmit, and sends this information to the next station on the ring. While the information frame is circling the ring, no token is on the network, which means that other stations wanting to transmit must wait. Therefore, collisions cannot occur in Token Ring networks.

The information frame circulates the ring until it reaches the intended destination station, which copies the information for further processing. The information frame continues to circle the ring and is finally removed when it reaches the sending station. The sending station can check the returning frame to see whether the frame was seen and subsequently copied by the destination.

Unlike Ethernet CSMA/CD networks, token-passing networks are deterministic, which means that it is possible to calculate the maximum time that will pass before any end station will be capable of transmitting. This feature and several reliability features make Token Ring networks ideal for applications in which delay must be predictable and robust network operation is important.

The Fiber Distributed-Data Interface (FDDI) also uses the Token Passing protocol.

• SDEL / EDEL - Starting Delimiter / Ending Delimiter. Both the SDEL and EDEL have intentional Manchester code violations in certain bit positions so that the start and end of a frame can never be accidentally recognized in the middle of other data.
• AC - Access control field Contains the Priority fields.
• FC - Frame control field indicates whether the frame contains data or control information
• Destination address C Destination station address.
• Source address CSource station address.
• Route information C The field with routing control, route descriptor and routing type information.
• Information - The Information field may be LLC or MAC.
• FCS - Frame check sequence.
• Frame status - Contains bits that may be set on by the recipient of the frame to signal recognition of the address and whether the frame was successfully copied.