Plasma arc welding is an arc welding process that uses a constricted arc set between a tungsten electrode and the workpiece to produce coalescence. The arc is constricted using a water-cooled nozzle to increase pressure and heat intensity. There are two types - non-transferred arc where the arc is independent of the workpiece, and transferred arc where the arc forms between electrode and workpiece, producing higher energy density. It offers advantages like arc stability, uniform penetration, and ability to produce fully penetrated keyhole welds on thin materials. However, it also has disadvantages like requiring special protection from radiations and noise.