Fractional distillation is a process used to separate mixtures of liquids based on their different boiling points. It involves heating the mixture in a distillation column, where the vapor rises and cools, condensing back into liquid at various heights. Each component can be collected separately as it condenses at different temperatures. This technique is commonly used in industries such as petroleum refining and chemical production. By efficiently separating components like ethanol and water, fractional distillation helps produce pure substances for various applications, ensuring that each component can be utilized effectively.