Stream Processing is a method of handling data in real-time as it flows continuously. Instead of waiting for all data to be collected before processing, it analyzes and acts on data instantly. This approach is useful for applications like monitoring social media feeds, financial transactions, or sensor data from IoT devices. In Stream Processing, data is processed in small chunks called streams, allowing for immediate insights and actions. Technologies like Apache Kafka and Apache Flink are commonly used to build systems that can efficiently manage and analyze these data streams, enabling businesses to respond quickly to changing conditions.