A Token Ring network works similarly to a relay race; the only one who can run is the person with the baton. A token is passed around the network, and the only system that can talk is that which is in control of the token.

When system A wants to talk to system D, it places its information in the token and sends it to system D. Every host on the network examines the token to see if the packet is meant for it. If not, the system passes the token on to the next device in the ring.