A nebula is a giant cloud of gas (mostly hydrogen and helium) and cosmic dust situated between stars in the interstellar medium. Nebulae serve as sites of stellar birth and death—including emission nebulae that glow from ionized gas, reflection nebulae that scatter starlight, and dark nebulae that obscure background stars.
Source: science.nasa.gov
01/07/2002

The nebula surrounding bright star S Mon is filled with dark dust and glowing gas. The strange shapes originate from fine interstellar dust reacting in complex ways with the energetic light and hot gas being expelled by the young stars. The region just below S Mon, the bright star in the above picture, is nicknamed the Fox Fur Nebula for its color and texture. The blue glow directly surrounding S Mon results from reflection, where neighboring dust reflects light from the bright star. The more diffuse red glow results from emission, where starlight ionizes hydrogen gas. Pink areas are lit by a combination of the two processes. S Mon is part of a young open cluster of stars named NGC 2264, located about 2500 light years away toward the constellation of Monoceros, just north of the Cone Nebula.