PHP is an open source server-side scripting language that allows embedding of PHP code within HTML files. It provides dynamic web pages by interacting with users and extracting information from databases or external sources. PHP code is executed on the server rather than the client browser, so it works with any browser. PHP includes features like variables, arrays, control structures, functions and the ability to easily handle forms and access popular databases. PHP 4 offers improved performance, object oriented capabilities and additional optional functions.