Lateral inhibition is a process in the nervous system where an excited neuron reduces the activity of its neighboring neurons. This mechanism enhances contrast and sharpens sensory perception, allowing the brain to better distinguish between different stimuli. For example, when light hits the retina in the eye, lateral inhibition helps to create a clearer image by emphasizing edges and borders. This phenomenon is crucial in various sensory systems, including vision and touch. In the visual system, photoreceptors in the retina interact through lateral inhibition to improve the detection of light and dark areas, contributing to our ability to perceive shapes and patterns effectively.