Recombinant DNA technology involves combining DNA from different sources to produce novel artificial DNA sequences. It works by isolating genetic material, cutting it using restriction enzymes, amplifying the gene of interest through PCR, ligating the DNA fragments, and inserting the recombinant DNA into a host cell. The goal is to alter genomes by modifying isolated genes and returning them to living cells to study heredity diseases and improve human health. Applications include detecting HIV, gene therapy, clinical diagnosis using ELISA, and genetically modifying crops for traits like pest resistance or increased nutrients.