Multiprotocol label switching (MPLS) networks are packet-based networks that offer considerable advantages, including improved network utilisation, reduced network latency, and the ability to meet the quality of service and strict level agreement requirements of any incoming traffic. Traffic Engineering (TE) is the stage which deals with geometric design planning and traffic operation of networks, network devices and relationship of routers for the transportation of data. TE is that feature of network engineering which concentrate on problems of performance optimization of operational networks. It involves techniques and application of knowledge to gain performance objectives, which includes movement of data through network, reliability, planning of network capacity and efficient use of network resources. MPLS is a modern technique for forwarding network data. It broadens routing according to path controlling and packet forwarding. In this thesis MPLS is computed on the basis of its performance, efficiency for sending data from source to destination.