In modern microservices architectures, effective traffic management is fundamental to ensuring reliable, scalable, and resilient service communication. We will examine the fundamental ideas of traffic management in Istio, a powerful service mesh solution that addresses the complexities of service-to-service communication, in this chapter. We’ll look at how Istio’s traffic management features, which are based on Envoy proxies and managed by Istiod, allow organizations to use advanced load balancing, routing, and resilience techniques and show how Istio’s virtual services, destination rules, and other resources combine to offer a fine-grained control over traffic flow while maintaining the separation between routing logic and service implementation using a real-world example of a video streaming recommendation service.