Microsoft, Intel, AST Corp., and Lotus Development developed the extended memory specification (XMS) in 1987 to specify how programs would use extended memory. The XMS specification functions on systems based on the 286 or higher and enables real-mode programs (those designed to run in DOS) to use extended memory and another block of memory usually out of the reach of DOS.

Before XMS, there was no way to ensure cooperation between programs that switched the processor into protected mode and used extended memory. There was also no way for one program to know what another had been doing with the extended memory because none of them could see that memory while in real mode. HIMEM.SYS becomes an arbitrator of sorts that first grabs all the extended memory for itself and then doles it out to programs that know the XMS protocols. In this manner, several programs that use XMS memory can operate together under DOS on the same system, switching the processor into and out of protected mode to access the memory. XMS rules prevent one program from accessing memory that another has in use. Because Windows 3.x is a program manager that switches the system to and from protected mode in running several programs at once, it has been set up to require XMS memory to function. Windows 9x/Me operates mostly in protected mode, but still calls on real mode for access to many system components. Windows NT, 2000, and XP are true protected-mode operating systems, as is OS/2.

Extended memory can be made to conform to the XMS specification by installing a device driver in the CONFIG.SYS file. The most common XMS driver is HIMEM.SYS, which is included with Windows 3.x and later versions of DOS, starting with 4.0 and up. Windows 9x/Me and NT/2000/XP automatically allow XMS functions in DOS prompt sessions, and you can configure full-blown DOS-mode sessions to allow XMS functions as well.