A dynamic-link library (DLL) is a shared library in the Microsoft Windows or OS/2 operating system. A DLL can contain executable code (functions), data, and resources.

A DLL file often has file extension .dll even though this is not required. The extension is sometimes used to describe the content of the file. For example, .ocx is a common extension for an ActiveX control and .drv for a legacy (16-bit) device driver.

A DLL that contains only resources can be called a resource DLL. Examples include an icon library, with common extension .icl, and a font library with common extensions .fon and .fot.

The file format of a DLL is the same as for an executable (a.k.a. EXE). The main difference between a DLL file and an EXE file is that a DLL cannot be run directly since the operating system requires an entry point to start execution. Windows provides a utility program (rundll.exe/rundll32.exe) to execute a function exposed by a DLL. Since they have the same format, an EXE can be used as a DLL. Consuming code can load an EXE via the same mechanism as loading a DLL.

The first versions of Microsoft Windows ran programs together in a single address space. Every program was meant to co-operate by yielding the CPU to other programs so that the graphical user interface (GUI) could multitask and be maximally responsive. All operating-system level operations were provided by the underlying operating system: MS-DOS. All higher-level services were provided by Windows Libraries "Dynamic Link Library". The Drawing API, Graphics Device Interface (GDI), was implemented in a DLL called GDI.EXE, the user interface in USER.EXE. These extra layers on top of DOS had to be shared across all running Windows programs, not just to enable Windows to work in a machine with less than a megabyte of RAM, but to enable the programs to co-operate with each other. The code in GDI needed to translate drawing commands to operations on specific devices. On the display, it had to manipulate pixels in the frame buffer. When drawing to a printer, the API calls had to be transformed into requests to a printer. Although it could have been possible to provide hard-coded support for a limited set of devices (like the Color Graphics Adapter display, the HP LaserJet Printer Command Language), Microsoft chose a different approach. GDI would work by loading different pieces of code, called "device drivers", to work with different output devices.

The same architectural concept that allowed GDI to load different device drivers also allowed the Windows shell to load different Windows programs, and for these programs to invoke API calls from the shared USER and GDI libraries. That concept was "dynamic linking".

In a conventional non-shared static library, sections of code are simply added to the calling program when its executable is built at the "linking" phase; if two programs call the same routine, the routine is included in both the programs during the linking stage of the two. With dynamic linking, shared code is placed into a single, separate file. The programs that call this file are connected to it at run time, with the operating system (or, in the case of early versions of Windows, the OS-extension), performing the binding.

For those early versions of Windows (1.0 to 3.11), the DLLs were the foundation for the entire GUI. As such, display drivers were merely DLLs with a .DRV extension that provided custom implementations of the same drawing API through a unified device driver interface (DDI), and the Drawing (GDI) and GUI (USER) APIs were merely the function calls exported by the GDI and USER, system DLLs with .EXE extension.