A volcanic crater is a circular depression in the ground caused by volcanic activity. It is typically a basin, circular in form within which occurs a vent (or vents) from which magma erupts as gases, lava, and ejecta. A crater can be of large dimensions, and sometimes of great depth. During certain types of climactic eruptions, the volcano's magma chamber may empty enough for an area above it to subside, forming what may appear to be a crater but is actually known as a caldera.

In the majority of typical volcanoes, the crater is situated atop the mountain formed from the erupted volcanic deposits such as lava flows and tephra. Volcanoes that terminate in such a summit crater are usually of a conical form. Other volcanic craters may be found on the flanks of volcanoes, and these are commonly referred to as flank craters. Some volcanic craters may fill either fully or partially with rain and/or melted snow, forming a crater lake.

Breached craters have a much lower rim on one side than the rest. A crater may be breached during an eruption, either by explosions or by lava, or through later erosion.

A crater lake is a lake that forms in a volcanic crater or caldera, such as a maar; less commonly and with lower association to the term a lake may form in an impact crater caused by a meteorite, or in an artificial explosion caused by humans. Sometimes lakes which form inside calderas are called caldera lakes, but often this distinction is not made. Crater lakes covering active (fumarolic) volcanic vents are sometimes known as volcanic lakes, and the water within them is often acidic, saturated with volcanic gases, and cloudy with a strong greenish color. Lakes located in dormant or extinct volcanoes tend to have fresh water, and the water clarity in such lakes can be exceptional due to the lack of inflowing streams and sediment.

Lava lakes, a rare phenomenon where a volcanic crater can sustainably contain a significant volume of molten lava, are discussed in a separate article.

Crater lakes form as precipitation within the rim fills the created depression. The water level rises until an equilibrium is reached between the rate of incoming and outgoing water. Sources of water loss singly or together, may include evaporation, subsurface seepage, and in places, surface leakage or overflow when the lake level reaches the lowest point on its rim. At such a saddle location, the upper portion of the lake is contained only by its adjacent natural volcanic dam; continued leakage through or surface outflow across the dam can erode its included material, thus lowering lake level until a new equilibrium of water flow, erosion and rock resistance is established. If the volcanic dam portion erodes rapidly or fails catastrophically, the occurrence produces a breakout or outburst flood. With changes in environmental conditions over time, the occurrence of such floods is common to all natural dam types.