A Product Requirements Document (PRD) is a formal document that outlines the essential features and functionalities of a product. It serves as a guide for the development team, ensuring everyone understands what needs to be built. The PRD typically includes details such as user needs, project goals, and specific requirements that the product must meet. The PRD is crucial for effective communication among stakeholders, including product managers, developers, and designers. By clearly defining expectations, it helps prevent misunderstandings and keeps the project on track. A well-crafted PRD can significantly enhance the chances of a successful product launch.