TCP/IP has 4 layers instead of OSI's 7 layers, but indirectly includes 5 layers. The layers are application, transmission, network, and host-to-network. While TCP/IP and OSI have similar functionality, TCP/IP includes sub-protocols like TCP, UDP, and SCTP to transmit data more efficiently between layers. Protocols like ARP, RARP, ICMP, and IGMP operate at the network layer and help devices resolve addresses, control messages, and send messages to multiple devices.