The Munker-White Illusion is a visual phenomenon that demonstrates how colors can appear differently based on their surrounding colors. When a specific color is placed next to a contrasting color, the perceived hue of the original color can change, leading to surprising visual effects. This illusion highlights the importance of context in color perception. In the Munker-White Illusion, a gray square can look like it has different colors when surrounded by various colored backgrounds. This effect occurs because our brains interpret colors relative to their neighbors, illustrating how perception can be influenced by surrounding stimuli.