ABAP stands for Advanced Business Application Programming and is the name of SAP's proprietary programming language used for developing applications within the SAP environment. It is primarily used to create custom reports, enhancements, and interfaces in SAP systems. ABAP enables developers to build scalable, secure, and efficient business applications that integrate seamlessly with SAP modules. It supports both procedural and object-oriented programming paradigms, allowing flexibility in development. ABAP plays a crucial role in data processing, automation, and system customization, ensuring businesses can tailor SAP solutions to meet their specific needs while maintaining system integrity and performance.