The document discusses the merge sort algorithm. Merge sort works by recursively dividing an unsorted list in half until each sublist contains one element, and then merging the sublists back together in sorted order. This can be done by dividing the list, sorting each half via recursive calls, and then using a merge process to combine the now-sorted halves into a fully sorted list. The document provides examples of merging two sorted lists and walking through the full merge sort process on a sample input list. It analyzes the time complexity of merge sort as O(n log n) and discusses in-place versus double-storage implementations.