A Bounded Context is a concept from Domain-Driven Design (DDD) that defines a specific boundary within which a particular model is applicable. It helps teams understand the limits of their domain and ensures that terms and concepts are used consistently. Each bounded context can have its own language, rules, and data structures, which prevents confusion when different teams work on different parts of a system. In a software system, multiple bounded contexts can exist, each representing a distinct area of functionality. For example, a Customer Management context may handle user data, while a Billing context manages payment processing. Clear boundaries between these contexts help maintain clarity and reduce complexity in large applications.