XSLT Processing is a method used to transform XML documents into different formats, such as HTML, text, or other XML structures. It utilizes XSLT (eXtensible Stylesheet Language Transformations), which is a language designed specifically for this purpose. By applying a set of rules defined in an XSLT stylesheet, the processor can read the original XML data and produce a new output that meets specific requirements. During XSLT Processing, the XSLT processor reads the XML input and applies templates that dictate how elements should be transformed. This process allows for the selective extraction and formatting of data, making it easier to present or manipulate information. The result is a structured output that can be used for various applications, enhancing the usability of XML data.