Vapor-liquid equilibrium (VLE) is the condition where a vapor phase and a liquid phase coexist at equilibrium, meaning their compositions do not change over time. This concept is essential in processes like distillation, where the separation of components relies on their differing volatilities, allowing for efficient separation based on the equilibrium between vapor and liquid phases. Understanding VLE helps in predicting how mixtures will behave during phase changes and is crucial for designing distillation columns and other separation processes.