A DNS server translates domain names to IP addresses, allowing clients to connect to origin servers. The document provides instructions on configuring a DNS server in Packet Tracer: 1) Build a network topology with PCs and a server 2) Configure static IPs for each device and set the DNS server address 3) Enable DNS service on the server and define name-IP mappings for each host 4) Test domain name resolution by pinging hosts by name instead of IP.