Freytag's Pyramid is a narrative structure that outlines the progression of a story, emphasizing the organization of plot elements into a coherent framework. This structure consists of five key components: exposition, rising action, climax, falling action, and resolution, which together illustrate how tension builds and resolves within a narrative. Understanding Freytag's Pyramid is essential in analyzing character relationships and dynamics, as it helps to map out how characters evolve in response to conflict throughout the story.