The document discusses regular grammars and how they generate regular languages. It defines regular grammars as grammars that are either right-linear or left-linear, meaning productions have at most one variable on the right-hand side. It then proves that languages generated by regular grammars are regular by constructing a finite automaton from a regular grammar that accepts the same language. Specifically, it shows how to build an NFA where states correspond to variables in the grammar and transitions correspond to grammar productions.