The Level 2 Data Flow Diagram (DFD) for the Library Management System provides a detailed view of the system's internal processes and data flow. Key processes include managing books, issuing and returning them, maintaining member records, and handling overdue notifications. The system interacts with external entities such as members, librarians, and an external database. Members can search for books, request issues, and return borrowed items. The librarian oversees book records, member registrations, and processes fines for overdue returns. Each process is connected by data stores and flows, ensuring smooth operation and organization of library functions.