Fuzzy logic is a form of knowledge representation that allows for approximate reasoning about imprecise concepts. It consists of four main components: a rule base that stores if-then rules provided by experts, fuzzification that transforms crisp inputs into fuzzy sets, an inference engine that performs fuzzy reasoning, and defuzzification that transforms the fuzzy output into a crisp value. Fuzzy logic uses membership functions to quantify linguistic terms and represent fuzzy sets graphically. It has characteristics like flexibility, minimizing human logic, and ability to handle approximate or uncertain reasoning. Fuzzy logic has wide applications in areas like businesses, automotive, defense, pattern recognition, and industries.