A nebula (Latin for "mist"; plur. nebulae) is an interstellar cloud of dust and gas. Originally nebula was a general name for any extended astronomical object, including galaxies beyond the Milky Way (some examples of the older usage survive; for example, the Andromeda Galaxy is sometimes referred to as the Andromeda Nebula).
Nebulae can be classified by how they are illuminated:
HII regions are the birthplace of stars. They are formed when very diffuse molecular clouds begin to collapse under their own gravity, often due to the influence of a nearby supernova explosion. The cloud collapses and fragments, forming sometimes hundreds of new stars. The newly-formed stars ionize the surrounding gas to produce an emission nebula.
Other nebulae are formed by the death of stars. A star that undergoes the transition to a white dwarf blows off its outer layer to form a planetary nebula. Novae and supernovae can also create nebulae known as nova remnants and supernova remnants respectively.
See also:
The Nebula Awards, annually given out by the Science Fiction and Fantasy Writers of America, are named after nebulae.