A translation memory (TM) is a database that stores "segments", which can be sentences, paragraphs or sentence-like units (headings, titles or elements in a list) that have previously been translated, in order to aid human translators. The translation memory stores the source text and its corresponding translation in language pairs called “translation units”. Individual words are handled by terminology bases and are not within the domain of TM. Software programs that use translation memories are sometimes known as translation memory managers (TMM) or translation memory systems (TM systems, not to be confused with a translation management system (TMS), which is another type of software focused on managing process of translation). Translation memories are typically used in conjunction with a dedicated computer-assisted translation (CAT) tool, word processing program, terminology management systems, multilingual dictionary, or even raw machine translation output. Research indicates that many companies producing multilingual documentation are using translation memory systems. In a survey of language professionals in 2006, 82.5% out of 874 replies confirmed the use of a TM. Usage of TM correlated with text type characterised by technical terms and simple sentence structure (technical, to a lesser degree marketing and financial), computing skills, and repetitiveness of content. The program breaks the source text (the text to be translated) into segments, looks for matches between segments and the source half of previously translated source-target pairs stored in a translation memory, and presents such matching pairs as translation full and/or partial matches. The translator can accept a match, replace it with a fresh translation, or modify it to match the source. In the last two cases, the new or modified translation goes into the database. Some translation memory systems search for 100% matches only, that is to say that they can only retrieve segments of text that match entries in the database exactly, while others employ fuzzy matching algorithms to retrieve similar segments, which are presented to the translator with differences flagged.

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