Azeotropic distillation involves the addition of an entrainer, a substance that alters the relative volatility of components in the mixture. The entrainer forms a new azeotrope with one or more components, allowing the original azeotrope to be broken. This process is carried out in a distillation column where the mixture is heated, and the more volatile components vaporize and are collected as distillate, while the less volatile components remain as the residue.