Software flow control is a method of flow control used in computer data links, especially RS-232 serial. It uses special codes, transmitted in-band, over the primary communications channel. These codes are generally called XOFF and XON (from "transmit off" and "transmit on", respectively). Thus, "software flow control" is sometimes called "XON/XOFF flow control". This is in contrast to flow control via dedicated out-of-band signals — "hardware flow control" — such as RS-232 RTS/CTS.

For systems using the ASCII character code, XOFF is generally represented using a character or byte with decimal value 19; XON with value 17.

The ASCII standard does not reserve any control characters for use as XON/XOFF specifically. However, it does provide four generic "device control" characters (DC1 through DC4). The Teletype Model 33 ASR adopted two of these, DC3 and DC1, for use as XOFF and XON, respectively. This usage was copied by others, and is now a de facto standard. The keyboard equivalents of Ctrl+S for XOFF, and Ctrl+Q for XON, also derive from this usage.

When one end of a data link is unable to accept any more data (or approaching that point), it sends XOFF to the other end. The other end receives the XOFF code, and suspends transmission. Once the first end is ready to accept data again, it sends XON, and the other end resumes transmission.

For example, one may imagine a computer sending data to a slow printer. Since the computer is faster at sending data than the printer can print it, the printer falls behind and approaches a situation where it would be overwhelmed by the data. The printer reacts to this situation by sending XOFF to the computer, which temporarily stops sending data. When the printer is again ready to receive more data, it sends XON to the computer, which starts sending data again.

XOFF/XON can be employed in both directions, for example, two teleprinters connected to each other.

The principal advantage of software flow control is the reduction in the number of electrical conductors between sender and receiver. Given a common ground, only two signals are needed, one to send and the other to receive. Hardware flow control requires additional wires between the two devices. It also requires specific hardware implementation, which had more significant costs in earlier days of computing (i.e., 1960s and 70s).

However, software flow control is not without its problems. The most important drawback is that software flow control is less reliable. Sending XOFF requires at least one character time to transmit, and may be queued behind already-transmitted data still in buffers. Hardware signals may be asserted almost instantaneously, and out-of-order.