On Linux, to better utilize memory, the main memory is divided into pages, A page is a fixed length block of main memory, that is contiguous in both physical memory addressing and virtual memory addressing. In most of current releases, it's 4KB size.

As memory is bigger and bigger in most of systems, let's take a quick calculation. 1MB of memory is equal to 256 pages; 1GB of memory is equal to 256,000 pages, etc. CPUs have a built-in memory management unit that contains a list of these pages, with each page referenced through a page table entry. When number of pages grow into millions or even billions, this results in performance issues:
When an application needs to use more memory pages than the memory management unit supports, the system falls back to slower, software-based memory management, which causes the entire system to run more slowly.
The simple way of resolving it is to increase the page size.

Transparent Huge Pages (THP) are enabled by default in RHEL 6 for all applications. The kernel attempts to allocate hugepages whenever possible and any Linux process will receive 2MB pages if the mmap region is 2MB naturally aligned. The main kernel address space itself is mapped with hugepages, reducing TLB pressure from kernel code. For general information on Hugepages, see: What are Huge Pages and what are the advantages of using them?

The kernel will always attempt to satisfy a memory allocation using hugepages. If no hugepages are available (due to non availability of physically continuous memory for example) the kernel will fall back to the regular 4KB pages. THP are also swappable (unlike hugetlbfs). This is achieved by breaking the huge page to smaller 4KB pages, which are then swapped out normally.

But to use hugepages effectively, the kernel must find physically continuous areas of memory big enough to satisfy the request, and also properly aligned. For this, a khugepaged kernel thread has been added. This thread will occasionally attempt to substitute smaller pages being used currently with a hugepage allocation, thus maximizing THP usage.

It's transparent to user, hence there is no need to modify the applications. However there are ways to optimize its use. For applications that want to use hugepages, use of posix_memalign() can also help ensure that large allocations are aligned to huge page (2MB) boundaries.


Huge pages kernel options

Defines the number of persistent huge pages configured in the kernel at boot time. The default value is 0. It is only possible to allocate (or deallocate) huge pages if there are sufficient physically contiguous free pages in the system. Pages reserved by this parameter cannot be used for other purposes.
Default size huge pages can be dynamically allocated or deallocated by changing the value of the /proc/sys/vm/nr_hugepages file.
In a NUMA system, huge pages assigned with this parameter are divided equally between nodes. You can assign huge pages to specific nodes at runtime by changing the value of the node's /sys/devices/system/node/node_id/hugepages/hugepages-1048576kB/nr_hugepages file.
For more information, read the relevant kernel documentation, which is installed in /usr/share/doc/kernel-doc-kernel_version/Documentation/vm/hugetlbpage.txt by default. This documentation is available only if the kernel-doc package is installed.
Defines the size of persistent huge pages configured in the kernel at boot time. Valid values are 2 MB and 1 GB. The default value is 2 MB.
Defines the default size of persistent huge pages configured in the kernel at boot time. Valid values are 2 MB and 1 GB. The default value is 2 MB.

Transparent Huge Pages(THP) options

Huge pages can be difficult to manage manually, and often require significant changes to code in order to be used effectively. As such, Red Hat Enterprise Linux 6 also implemented the use of transparent huge pages (THP). THP is an abstraction layer that automates most aspects of creating, managing, and using huge pages.
THP hides much of the complexity in using huge pages from system administrators and developers. As the goal of THP is improving performance, its developers (both from the community and Red Hat) have tested and optimized THP across a wide range of systems, configurations, applications, and workloads. This allows the default settings of THP to improve the performance of most system configurations. However, THP is not recommended for database workloads.
THP can currently only map anonymous memory regions such as heap and stack space.

Also, THP is only enabled for anonymous memory regions. There are plans to add support for tmpfs and page cache. THP tunables are found in the /sys tree under /sys/kernel/mm/redhat_transparent_hugepage.

The values for /sys/kernel/mm/redhat_transparent_hugepage/enabled can be one of the following:

always   -  always use THP
never    -  disable THP

khugepaged will be automatically started when transparent_hugepage/enabled is set to "always" or "madvise, and it'll be automatically shutdown if it's set to "never". The redhat_transparent_hugepage/defrag parameter takes the same values and it controls whether the kernel should make aggressive use of memory compaction to make more hugepages available.