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Application doamin is a logical partition within which the process is isolated and hosts .Net assemblies inside it.
The single process can have multiple application domains, and in turn each application domain has multiple threads inside it, but the thread not confined to the application domain as it is free to cross the app. domain boundries to another domain provided that the thread execution can be done only in a specific domain at a time.
The application domain is managed and created by basically CLR.
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