Natural Language Processing (NLP) is a subfield of artificial intelligence that deals with interactions between computers and human language. NLP aims to analyze written and spoken language to understand its meaning. It has applications in areas like text generation, machine translation, sentiment analysis, and speech recognition. NLP works by preprocessing text through steps like tokenization and feature extraction, then applying machine learning models like neural networks to analyze language patterns and relationships between linguistic elements. While NLP has advanced through statistical and deep learning techniques, challenges remain around ambiguity, contextual understanding, and modeling rare languages.