WSO2 Application Server is an open source, multi-tenant application server that provides scalable web services and web application hosting. It is built on the WSO2 Carbon middleware platform and supports standards like SOAP, REST, and JAX-WS. Key features include lazy loading, clustering, caching, and integration with the WSO2 identity server. Developers can use WSO2 Developer Studio for configuration and development. The application server also supports Jaggery.js for writing web applications and APIs in JavaScript.