XML (Extensible Markup Language) is a markup language that defines a set of rules for encoding documents in a format that is both human-readable and machine-readable. It was designed to be simple, open, and extensible. Key features of XML include extensibility, separation of content from presentation, use of tags to denote hierarchies and relationships in data, and ability to validate documents. XML allows users to define their own tags to represent data for a given problem domain, providing more meaning and structure than HTML.