Psycholinguistics examines the processes involved in language production and comprehension, focusing on how the brain formulates and understands spoken and written language. Key brain areas like Broca's area, Wernicke's area, the motor cortex, and the arcuate fasciculus are crucial for these functions, illustrating the localization of language abilities. Additionally, bilingual individuals experience unique processing dynamics, as their knowledge of multiple languages influences the comprehension and production of their native language.