Neural Token Compression (NTC) introduces a dynamic tokenization strategy that adjusts token representations based on semantic and structural dependencies, aiming to enhance the efficiency and scalability of Large Language Models (LLMs). Traditional tokenization methods often result in fixed token sets, which may not optimally capture the complexities of diverse linguistic patterns. NTC addresses this limitation by enabling adaptive token merging, thereby reducing the number of tokens processed during training and inference. This reduction leads to decreased computational overhead and memory usage, facilitating the deployment of LLMs in resource-constrained environments. The implementation of NTC involves a mathematical framework that leverages semantic similarity measures and structural dependencies to inform token merging decisions. Experimental evaluations demonstrate that NTC achieves significant improvements in perplexity and compression ratios compared to baseline tokenization approaches. Qualitative analyses further reveal that NTC maintains the consistency and coherence of generated text, indicating its potential for various downstream tasks. However, certain limitations, such as variability in token sequences and the complexity of capturing linguistic dependencies, warrant further research. Future directions include refining the NTC framework and exploring its applicability across diverse languages and domains. The integration of NTC into LLM architectures signifies a meaningful advancement in natural language processing, offering a promising avenue for optimizing tokenization processes and improving the performance of largescale language models.