Attribution Theory is a psychological concept that explains how people interpret and understand the causes of their own and others' behaviors. It focuses on whether individuals attribute actions to internal factors, like personality traits, or external factors, such as situational influences. For example, if someone fails a test, they might think it’s due to their lack of preparation (internal) or because the test was unfair (external). This theory helps us understand social interactions and decision-making. By recognizing how we attribute causes, we can improve our communication and relationships. For instance, understanding that a friend is stressed due to work pressures can foster empathy and support.