A Project Management Plan is a formal document that outlines how a project will be executed, monitored, and closed. It includes key components such as project scope, objectives, timelines, resources, and budget. This plan serves as a roadmap for the project team, ensuring everyone understands their roles and responsibilities. Additionally, the Project Management Plan helps in identifying potential risks and establishing strategies to mitigate them. It is a living document that may be updated throughout the project lifecycle to reflect changes and ensure alignment with project goals.