Vapor-liquid equilibrium (VLE) is a state in which a liquid and its vapor coexist at a specific temperature and pressure, with the rates of evaporation and condensation being equal. In this state, the chemical potentials of the liquid and vapor phases are balanced, meaning that the composition of both phases remains constant over time. VLE is crucial for understanding phase changes, such as boiling and condensation, and plays a key role in processes like distillation.