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In AWS, security groups and network access control lists (NACLs) are essential components for managing network security within a Virtual Private Cloud (VPC).

Security groups act as virtual firewalls that control inbound and outbound traffic for Amazon EC2 instances within a VPC. They operate at the instance level and evaluate rules to either allow or deny traffic.

Network Access Control Lists (NACLs) are stateless, subnet-level firewalls that control inbound and outbound traffic at the subnet level. They evaluate rules based on the source and destination IP addresses, ports, and protocols.

Both security groups and NACLs play a crucial role in securing the network within a VPC and allow you to define fine-grained control over the traffic flow.