Conway's Law is a principle that suggests organizations design systems that mirror their communication structures. This means that the way teams are organized and interact can influence the architecture of the software they create. For example, if a company has separate teams for different features, the resulting software may have distinct modules that reflect those divisions. The law was proposed by Melvin Conway in 1968 and highlights the importance of team collaboration in software development. It implies that to create cohesive and integrated systems, organizations should consider aligning their team structures with their desired system architecture.