NK cells function through two main mechanisms: direct cytotoxicity and cytokine production. They can directly kill target cells by releasing perforin and granzymes, which induce apoptosis in the target cells. Additionally, NK cells secrete cytokines like Interferon-gamma (IFN-γ) and Tumor necrosis factor-alpha (TNF-α), which help modulate the immune response and enhance the activity of other immune cells.