The 80386 chip is described which offers virtual memory (VM) capabilities with memory protection. The 8086 addressing compatibility problem in the 80386 is solved by providing an 8086 virtual machine mode that is discussed in detail. In this mode, even though the machine is running in protected mode, the 80386 uses 8086-type selector and addressing. The 80386's 64-terabyte virtual address space is composed of 16,000 segments of 4 gigabytes each.