Formal Grammar is a set of rules that defines the structure of a language. It focuses on how words and phrases can be combined to create sentences. This system helps linguists and computer scientists understand and analyze languages systematically. In linguistics, formal grammar is often categorized into different types, such as context-free grammar and context-sensitive grammar. These categories help in understanding the complexity of languages and are essential in fields like computational linguistics and natural language processing, where machines need to interpret human language accurately.