Volume of distribution (Vd) is a pharmacokinetic parameter that describes the extent to which a drug disperses throughout body tissues relative to the plasma concentration. It helps in understanding how well a drug permeates into different compartments of the body, such as tissues and organs, and is influenced by factors like tissue binding, lipophilicity, and plasma protein binding. A higher Vd indicates that a drug is widely distributed throughout the body, while a lower Vd suggests it remains primarily in the bloodstream.