Schema Theory is a cognitive framework that helps individuals organize and interpret information based on their prior knowledge and experiences. It suggests that people use mental structures, called schemas, to categorize and make sense of new information. These schemas can be shaped by culture, education, and personal experiences, influencing how we perceive the world around us. When we encounter new information, we either assimilate it into existing schemas or accommodate our schemas to fit the new data. This process allows for efficient learning and understanding, as it helps individuals predict outcomes and navigate complex situations by relying on established patterns and associations.