OSPF prefix-suppression is a feature used to reduce the number of LSAs that are flooded within an area. This helps reduce the number of Type-1 (Router) and Type-2 (Network) LSAs advertised. Fewer number of LSAs means SPF calculation can become faster.
It does not suppress Type-3 (Summary), Type-4 (Summary ASBR), Type 5 (External) or Type 7 (NSSA External) LSAs.
OSPF prefix-suppression can be enabled globally on a router or on per-interface basis.
A use-case for OSPF prefix-suppression might be if communication is only expected between end hosts. In this case, advertising the transit links between the routers to all routers is not needed.
Enabling prefix-suppression globally on a router:
router ospf 1
prefix-suppression
Enabling prefix-suppression on per-interface basis:
interface Gi0/0
ip ospf prefix-suppression
Verification:
show ip ospf database router
show ip ospf database network
show ip route
Further Reading: