An FIR (Finite Impulse Response) filter is a type of digital filter that generates its output based solely on a finite number of previous input values. It allows for the design of various filtering functions, such as highpass, lowpass, or bandpass, by customizing the polynomial calculations used in the filter. Unlike IIR (Infinite Impulse Response) filters, which depend on both past input and output values, FIR filters do not have memory, meaning their output is limited to a specific time window. While IIR filters can achieve sharper frequency responses, they are more complex and less stable than FIR filters. Understanding FIR filters is essential for applications in signal processing and digital communications.