Diloxanide furoate is a luminal amebicide that acts directly on the cyst and trophozoite forms of Entamoeba histolytica in the intestinal lumen. It disrupts protozoal metabolism by interfering with energy-producing pathways, leading to decreased ATP synthesis and parasite death. Its primary action is confined to the intestinal lumen due to poor systemic absorption, making it effective at eradicating intestinal colonization but not invasive disease.