Plasmids are small, circular, double-stranded DNA fragments that exist as extrachromosomal structures in microorganisms, playing a crucial role in genetic manipulation. They are classified based on the presence of the transfer (tra) gene into conjugative and non-conjugative types, with various functional categories including fertility, resistance, and virulence plasmids. The versatility of plasmids as vectors for gene insertion and their applications in antibiotic resistance and environmental degradation underline their significance in biotechnology and medicine.