This article explores what an IP PBX System is, how it works, and the benefits it can offer to businesses of all sizes. An IP PBX ("Internet Protocol private branch exchange") is a system that connects telephone extensions to the public switched telephone network (PSTN) and provides internal communication for a business. An IP PBX System is a phone system that enables companies to use an internet connection to handle both internal and external calls. When a user calls, the system transforms the audio signals into data packets, which are then sent to the recipient's device via the internet.