Rainbow is a natural phenomenon that appears as an arc of colors in the sky after rain. It occurs when sunlight passes through water droplets, refracting and separating white light into different colors. The light is refracted when it enters the water droplet, reflects off the inside surface, and refracts again when exiting. This causes the different wavelengths of light to separate into distinct bands of color forming an arc. Rainbows can also form under heavy waterfalls due to the same optical phenomenon of light refraction and dispersion through water droplets.