NAT overloading, also known as Port Address Translation (PAT), uses port numbers to track multiple internal hosts that share a single inside global IP address. This method differentiates each internal host's traffic by assigning unique TCP/UDP port numbers to each session. The router maintains a translation table that maps these port numbers along with the inside global IP address to the corresponding internal host's private IP address and port. When responses return from the external network, the router uses this table to correctly forward the traffic back to the originating internal host. This technique allows many devices to share one public IP address efficiently