This revised and expanded new edition elucidates the elegance and simplicity of the fundamental theory underlying formal languages and compilation. Retaining the reader-friendly style of the 1st edition, this versatile textbook describes the essential principles and methods used for defining the syntax of artificial languages, and for designing efficient parsing algorithms and syntax-directed translators with semantic attributes. Features: presents a novel conceptual approach to parsing algorithms that applies to extended BNF grammars, together with a parallel parsing algorithm (NEW); supplies supplementary teaching tools at an associated website; systematically discusses ambiguous forms, allowing readers to avoid pitfalls; describes all algorithms in pseudocode; makes extensive usage of theoretical models of automata, transducers and formal grammars; includes concise coverage of algorithms for processing regular expressions and finite automata; introduces static program analysis based on flow equations.