This research addresses privacy protection in Natural Language Processing (NLP) by introducing a novel algorithm based on differential privacy, aimed at safeguarding user data in common applications such as chatbots, sentiment analysis, and machine translation. With the widespread application of NLP technology, the security and privacy protection of user data have become important issues that need to be solved urgently. This paper proposes a new privacy protection algorithm designed to effectively prevent the leakage of user sensitive information. By introducing a differential privacy mechanism, our model ensures the accuracy and reliability of data analysis results while adding random noise. This method not only reduces the risk caused by data leakage but also achieves effective processing of data while protecting user privacy. Compared to traditional privacy methods like data anonymization and homomorphic encryption, our approach offers significant advantages in terms of computational efficiency and scalability while maintaining high accuracy in data analysis. The proposed algorithm's efficacy is demonstrated through performance metrics such as accuracy (0.89), precision (0.85), and recall (0.88), outperforming other methods in balancing privacy and utility. As privacy protection regulations become increasingly stringent, enterprises and developers must take effective measures to deal with privacy risks. Our research provides an important reference for the application of privacy protection technology in the field of NLP, emphasizing the need to achieve a balance between technological innovation and user privacy. In the future, with the continuous advancement of technology, privacy protection will become a core element of data-driven applications and promote the healthy development of the entire industry.