Plasma is classified as a fluid in a broad sense, similar to gases, due to its ability to flow and take the shape of its container. It possesses viscosity, which contributes to its fluid-like behavior. The unique characteristics of plasma arise from the presence of fully ionized atoms, partially ionized atoms, and free electrons. Understanding plasma's fluid dynamics involves concepts like the equation of continuity. Overall, plasma exhibits fluid properties while also having distinct differences from other fluid types.