Setting refers to the time and place in which a story unfolds. It encompasses the physical location, historical period, and cultural backdrop that shape the narrative. A well-defined setting can enhance the mood and influence the characters' actions, making it a crucial element in storytelling. In literature, the setting can range from a specific city or country to a more abstract concept like a dystopian future. It provides context for the plot and helps readers visualize the world in which the characters exist. Understanding the setting allows for a deeper appreciation of the themes and conflicts presented in the story.