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Abstract:The term 'Fuzzy' means vague, unclear, or imprecise. Fuzzy Logic is a many-valued logic that is based on the theory of Fuzzy Sets and it facilitates the representation of approximate reasoning. It finds its use in various areas where binary representations do not suffice. In this paper, we have confined our discussions on the theoretical foundations and advancements of modern Fuzzy Logic. We start with a brief account of Fuzzy Sets followed by the operations they support. Then we discuss how the Linguistic Variables allow more realistic reasoning as opposed to traditional binary reasoning. Then we introduce the theoretical aspects of the calculus of Fuzzy Restrictions. Finally, we discuss the theory of possibility as an alternative to the theory of probability. For the sake of simplicity and intelligibility, we have tried to avoid incommodious mathematical equations throughout this paper.