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Computer-assisted translation (CAT), also called computer-aided translation, is a form of translation where a human translator creates a target text with the assistance of a computer program. Note that in computer-assisted translation, the machine supports an actual, human translator.

Computer-assisted translation can include standard dictionary and grammar software; however, the term is normally used to refer to a range of specialised programs available for the translator, including translation memory, terminology management and alignment programs.

Translation memory (TM) programs store previously translated source texts and their equivalent target texts in a database and retrieve related segments during the translation of new texts.

Such programs split the source text into manageable units known as "segments." A source-text sentence or sentence-like unit (headings, titles or elements in a list) may be considered a segment, or texts may be segmented into larger units such as paragraphs or small ones, such as clauses. As the translator works through a document, the software displays each source segment in turn and provides a previous translation for re-use, if the program finds a matching source segment in its database. If it does not, the program allows the translator to enter a translation for the new segment. After the translation for a segment is completed, the program stores the new translation and moves onto the next segment. The translation memory, in principle, is a simple database fields containing the source language segment, the translation of the segment, and other information such as segment creation date, last access, translator name, and so on.

Some translation memory programs function as standalone environments, while others function as an add-on or macro to commercially available word-processing or other business software programs. Add-on programs allow source documents from other formats, such as desktop publishing files, spreadsheets, or HTML code, to be handled using the TM program.

Terminology management software provides the translator a means of automatically searching a given terminology database for terms appearing in a document, either by automatically displaying terms in the translation memory software interface window or through the use of hot keys to view the entry in the terminology database. Some programs have other hotkey combinations allowing the translator to add new terminology pairs to the terminology database on the fly during translation.

Alignment programs take completed translations, divide both source and target texts into segments, and attempt to determine which segments belong together in order to build a translation memory database with the content. The resulting TM can then be used for future translations.