Crystal Field Theory (CFT) explains how the arrangement of ligands around a central metal ion affects its electronic structure and properties. In this theory, ligands are considered to create an electric field that influences the energy levels of the metal's d-orbitals. Depending on the geometry of the complex, such as octahedral or tetrahedral, the d-orbitals split into different energy levels, which can affect the color and magnetic properties of the compound. CFT is particularly useful in understanding transition metals, which have partially filled d-orbitals. The theory helps predict the stability of various metal-ligand complexes and their reactivity. By analyzing the interactions between the metal ion and ligands, chemists can gain insights into the behavior of coordination compounds in various chemical processes.