This article offers an in-depth examination of the theoretical underpinnings of word formation in the English language and elucidates its significance within contemporary linguistic inquiry. Word formation represents a fundamental component of the linguistic system, facilitating the generation of new lexical units, the continual enrichment of the vocabulary, and the emergence of nuanced semantic developments. The study provides a comprehensive analysis of the principal mechanisms of word formation—including affixation, compounding, conversion, abbreviation, and blending—highlighting their functional properties, their distribution across diverse communicative registers, and the evolutionary tendencies shaped by shifting communicative demands. Furthermore, the article investigates the dynamic restructuring of English word-formation processes under the influence of globalization, digital interaction, and technological advancement, as well as the proliferation of neologisms and their growing relevance within international discourse. The findings substantiate that the morphological system of English is undergoing persistent transformation and that the mechanisms of word formation are intricately intertwined with social, cultural, and technological determinants.