Plato placed the Forms in a separate realm, each particular thing being what it is by participating in the corresponding Form from a distance. Aristotle finds this explanation hollow: if Socrates is a man because he participates in the Form of Man, we need a further account of what relates Socrates to the Form — and that account will require another Form, generating an infinite regress. Forms must be immanent in the things they explain, not floating above them in another world.
Every natural substance is a compound (sunholon) of matter and form. Matter is the underlying stuff that can take on different forms; form is the structural principle that makes the matter into this determinate kind of thing. The matter of a statue is the bronze; the form is the shape that makes it a statue of Hermes rather than a mass of metal. Neither element alone is the full substance: the bronze without the shape is not yet the statue; the shape without the bronze is nowhere at all.
Form is what Aristotle calls the essence — the "what it was to be" for a thing (to ti ên einai). To know a thing's essence is to know what it is to be that kind of thing, the definition that captures its nature fully. For Aristotle, essence is not merely a conceptual label we apply but a feature of reality: each natural kind has a real essence that structures its characteristic activities and explains what it can do, suffer, and become.
The analysis of substance as form, matter, and compound runs through Metaphysics VII–VIII. The phrase "what it was to be" (to ti ên einai) appears first in the Categories but becomes central in Books VII–IX. Aristotle's doctrine of immanent form remains the most influential alternative to Platonism in the history of philosophy.