Database Fragmentation refers to the process where a database is divided into smaller, manageable pieces called fragments. This division can improve performance and efficiency by allowing data to be stored closer to where it is most frequently accessed. Fragmentation can occur horizontally, vertically, or through a combination of both methods, depending on how the data is organized. When a database becomes fragmented, it can lead to slower access times and increased storage costs. Regular maintenance, such as defragmentation, can help restore optimal performance by reorganizing the data and reducing fragmentation. Proper management of fragmentation is essential for maintaining the overall health of a database system.