VRF systems differ from traditional HVAC systems in that they use a single outdoor unit to serve multiple indoor units, which can be configured to provide heating, cooling, or both. This allows for more precise temperature control and increased energy efficiency, as only the indoor units that need to operate are energized. VRF systems also offer greater flexibility and scalability, as indoor units can be added or removed as needed. However, VRF systems can be more complex and require more sophisticated controls and installation techniques.