Network failure is the complete or partial failure of network component or components. The techniques like Failure Carrying Packet (FCP), tunneling, Packet Re-cycling (PR), Multiple Routing Configuration (MRC) etc. handles failures in network. When they handle multiple failures loop formation or packet loss will be there. Localized On-demand Link State (LOLS) routing is a technique for handling multiple failures in IP network. In LOLS every packet uses blacklist, which is a minimal set of failed links. While performing next hop these failed links can be excluded. The blacklist can be reset when forwarding progress is there. When failures are there, LOLS deviates from its original path by small stretch only. All these features make LOLS as a good mechanism.