Analytic function theory involves functions that can be expressed as convergent power series, making them infinitely differentiable with a Taylor expansion around a point. Laplace's equation plays a crucial role in this theory, particularly in complex analysis, where a function is considered holomorphic if it satisfies the Cauchy-Riemann equations. The complex Laplacian indicates that if a function is holomorphic, it is also analytic, as it results in zero. Harmonic functions, which satisfy Laplace's equation, are analogous to holomorphic functions in the real domain. Understanding these relationships enhances the study of both analytic and harmonic functions in complex variables.