This chapter provides a detailed overview of the EU's Recovery and Resilience Facility, which is the central component of the Next Generation EU plan. The facility is governed by Regulation 2021/241, and this chapter focuses on its legal basis, the six pillars, and the principles of financial additionality and "do no significant harm." It also explains the grant and loan processes, the link between the Recovery and Resilience Facility and economic governance, and the criteria for grant and loan allocation. In addition, it examines the implementation, review, and monitoring of Recovery and Resilience Plans by the Commission and the Council. It examines transparency and the Recovery and Resilience Dialogue, reporting requirements, and financial protection rules, highlighting the importance of collaboration and oversight in the EU's financial recovery efforts.