What does DHCP actually do?
Dynamic Host Configuration Protocol hands out network settings automatically, so a device joining a network can configure itself without anyone typing anything.
What it supplies. Not just an IP address — the full set a device needs:
An IP address from a defined pool.
A subnet mask.
A default gateway — the router to send non-local traffic to.
DNS server addresses.
Sometimes more — NTP time servers, domain search suffixes, and configuration for IP telephones or network boot.
How the exchange works, conventionally remembered as DORA:
Discover — the client broadcasts a request, since it has no address yet and does not know where the server is.
Offer — a DHCP server responds with a proposed address.
Request — the client formally asks for that address, broadcast so any other servers know it declined theirs.
Acknowledge — the server confirms and records the assignment.
Leases. An address is not permanent; it is leased for a period. The client attempts renewal at around half the lease time, and again later. If it never renews, the address returns to the pool for reuse. This is what allows a network to serve far more devices over time than it has addresses.
A DHCP reservation ties a specific address to a device's MAC address, so it always receives the same one. This is almost always better than setting a static address on the device itself, because the router remains aware of the allocation and cannot hand it to something else.
What goes wrong:
Two DHCP servers on one network — typically a second router added without disabling its DHCP — producing conflicting addresses and intermittent failures. This is the single most common home network misconfiguration.
Pool exhaustion, where more devices than addresses appear.
An address in the 169.254.x.x range means the device gave up and self-assigned — the DHCP server was unreachable. It is a useful diagnostic, indicating a link or server problem rather than an internet problem.
Static addresses set inside the DHCP pool, causing conflicts.