A more thorough explanation:

Definition: The immediate area surrounding a specific location. It can also refer to a group of people who live in a particular area and share similar economic and social interests.

Examples:

• My neighborhood is very quiet and peaceful.
• The neighborhood kids often play together at the park.
• The neighborhood association organized a community clean-up day.

The first example illustrates the first part of the definition, referring to the physical area surrounding a specific location. The second and third examples illustrate the second part of the definition, referring to a group of people who live in a particular area and share similar interests.