AWS CloudFormation is a service provided by Amazon Web Services that allows users to define and manage their cloud resources using code. It enables the creation of templates in JSON or YAML format, which describe the desired infrastructure, such as servers, databases, and networking components. This approach helps automate the setup and management of resources, ensuring consistency and reducing manual errors. With AWS CloudFormation, users can easily replicate environments, making it ideal for development, testing, and production scenarios. The service also supports version control, allowing teams to track changes and roll back to previous configurations if needed.