The reticular formation is a region in the brainstem that regulates consciousness and brain activity. It consists of three columns of nuclei extending from the spinal cord to the thalamus. The reticular formation receives all peripheral sensory information and is capable of activating large areas of the thalamus and cortex. It regulates levels of alertness and consciousness based on sensory information received, elevating brain activity during wakefulness and allowing sleep when input is diminished.