Tzimtzum (Hebrew צמצום ṣimṣūm "contraction" or "constriction") is a term used in the Lurianic Kabbalah teaching of Isaac Luria, explaining his concept that God began the process of creation by "contracting" his infinite light in order to allow for a "conceptual space" in which a finite and seemingly independent world could exist. This contraction, forming an "empty space" (חלל הפנוי) in which creation could begin, is known as the Tzimtzum.
Because the Tzimtzum results in the conceptual "space" in which the physical universe and free will can exist, God is often referred to as "Ha-Makom" (המקום lit. "the place", "the omnipresent") in Rabbinic literature. Relatedly, olam—the Hebrew word for "world" or universe—is derived from the root word עלם meaning "concealment". This etymology is complementary with the concept of Tzimtzum, in that the physical universe conceals the spiritual nature of creation.
Read more about Tzimtzum: In Lurianic Thought, Inherent Paradox, Chabad View, Vilna Gaon's View, Application in Clinical Psychology, In Popular Culture