Noise Margin is a measure of the ability of a digital circuit to tolerate noise and maintain reliable operation. It represents the difference between the actual voltage levels of a signal and the minimum required levels for proper recognition of binary states (0s and 1s). A higher noise margin indicates better resilience against interference, ensuring that the circuit can function correctly even in the presence of electrical noise. In digital communication systems, such as those involving transistors or integrated circuits, noise margin is crucial for maintaining data integrity. It helps designers assess how much noise a system can handle before errors occur. By optimizing noise margins, engineers can enhance the performance and reliability of electronic devices.