Perception involves interpreting sensory information from our environment. It is a two-step process of sensation, where stimuli are received by our senses, and interpretation by the brain. Perception is influenced by past experiences, attention, motives, and emotions. Gestalt principles like figure-ground relationships, proximity, and closure help organize discrete stimuli into meaningful wholes. Perception can involve errors like illusions, where external stimuli are misinterpreted, and hallucinations, where perception occurs without external stimuli, as seen in some mental illnesses.