VAC is useful for recording an application's audio output in almost real time or transferring a sound stream to another application so it may process it. Similarly, more than one application is able to receive audio from an input cable, whether it's sharing the same audio data with another target or receiving its own personal audio stream.

If more than one application is sending audio through an output virtual cable, VAC is able to mix all of the streams together or create separate corresponding virtual input cables. VAC is the audio equivalent of a MIDI loopback device such as MultiMid or Hubi, and can be used instead of 'Stereo Mix' or 'What U Hear' features of audio adapters. Since all transfers are made digitally, there is no loss in sound quality. Any application is able to send an audio stream to the input side of a 'virtual cable' while a corresponding application can receive this stream from the output side. Virtual Audio Cable is a software product based on WDM multimedia driver that allows a user to transfer audio streams from one application to another.