On a router each interface requires a unique IP address so it can install an entry in the routing table and process IP packets. IP unnumbered allows you to process IP packets without configuring a unique IP address on an interface, this works by “borrowing” an IP address from another interface.
Why would you want this and not just configure an IP address on the interface? To answer that question we have to dive into the past.
Once upon a time we didn’t have VLSM (Variable Length Subnet Mask) and we used classful routing protocols like RIP version 1 and IGRP (the predecessor of EIGRP). This means that the smallest subnet you could use was a /24. When using public IP addresses this is a huge waste of IP space. Take a look at the picture below:
There are 3 routers connected with each other using point-to-point serial links. We have to use two /24 subnets while we only require 4 IP addresses in total…such a waste!
IP unnumbered was created to solve this problem so you didn’t have to waste entire subnets on point-to-point interfaces. It borrows an IP address from another interface so you don’t have to configure one on the point-to-point interface.



