Asset bundling is the process of packaging game resources -- textures, models, sounds, animations, scripts -- into optimized archive files for efficient loading at runtime. Instead of loading thousands of individual files from disk (slow, especially on spinning hard drives), the engine loads a few large bundles and pulls assets from memory. Smart bundling groups assets by when they are needed: all the textures for a level go in one bundle, all the UI assets in another. This minimizes disk seeks and reduces load times. Compression reduces download and install sizes. Bundle dependency management ensures shared assets are not duplicated. Modern engines like Unity and Unreal have built-in asset bundling systems (Asset Bundles and Pak files respectively) that handle compression, dependency tracking, and platform-specific optimization.