Mohr's Stress Theory is a graphical representation used in engineering to analyze the state of stress at a point in a material. It helps visualize how different types of stress, such as normal and shear stress, interact under various loading conditions. The theory uses a Mohr's Circle to depict these stresses, allowing engineers to determine the maximum and minimum stresses that a material can withstand before failure. The theory is particularly useful in understanding how materials behave under complex loading scenarios. By plotting the principal stresses and shear stresses on the circle, engineers can easily identify critical points where failure may occur, aiding in the design of safer structures and components.