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XBAP stands for XAML Browser Application. XBAP allows for WPF applications to be used inside a browser. The .NET framework is required to be installed on the client system. Hosted applications run in a partial trust sandbox environment. They are not given full access to the computer’s resources and not all of WPF functionality is available.WPF supports the creation of applications that run directly in a web browser. (So will WPF/E, when it is released.) They are called XAML Browser Applications (XBAPs), and have a .xbap file extension.