Content Delivery Network (CDN) technology enhances website performance by distributing content across multiple geographically dispersed servers. When a user requests a webpage, the CDN serves the content from the server closest to the user, reducing latency and load times. This not only improves the overall user experience but also increases the efficiency of traffic handling during peak loads. By caching static content like images and stylesheets, CDNs help in minimizing the bandwidth consumption on the origin server and reduce the likelihood of downtime.