The document discusses encapsulation and decapsulation in computer networks. It explains that encapsulation involves adding headers at each layer, such as adding a transport header and then a network header. Decapsulation is the reverse process of removing these headers at each layer. The document provides details on encapsulation at the source host, decapsulation and encapsulation at routers, and decapsulation at the destination host. It also discusses addressing at each layer of the network stack.