What Route Reflectors does ?

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Within any BGP autonomous system, every IBGP speaker must have a fully meshed peering arrangement with every other iBGP speaker. This is due to the fact that a BGP speaker will not advertise a route learned via another iBGP speaker to a third iBGP speaker. The use of route reflectors is one way to maintain connectivity throughout the AS without having a fully meshed peering arrangement. By relaxing this restriction a bit and by providing additional control, we can allow a router to advertise (reflect) iBGP learned routes to other iBGP speakers.
When using route reflectors, the clients need only peer to the route reflector.