The Michelson-Morley Experiment was a scientific test conducted in 1887 to detect the presence of the 'luminiferous ether,' a substance thought to carry light waves. The experiment aimed to measure differences in the speed of light in perpendicular directions, expecting variations due to the Earth's movement through the ether. Its failure to find any significant difference played a crucial role in the development of modern physics, leading to the formulation of special relativity and altering our understanding of space and time.