This experiment simulates IP forwarding within a local area network (LAN) and across a router using NetSim. It creates a network with nodes, switches, and a router. Packet traces are analyzed for intra-LAN communication between two nodes, which uses ARP protocol to discover MAC addresses. For communication across the router, the source node uses its default gateway's MAC address, obtained via ARP, to forward packets. Changing the default gateway causes errors, showing the importance of the default gateway in inter-LAN communication. The experiment demonstrates how IP forwarding works differently within and outside a LAN.