Many nebulae form from the gravitational collapse of gas in the interstellar medium or ISM. As the material collapses under its own weight, massive stars may form in the center, and their ultraviolet radiation ionises the surrounding gas, which creates plasma, making it visible at optical wavelengths. An example of this type of nebula is the Rosette Nebula or the Pelican Nebula. The size of these nebulae, known as HII regions, varies depending on the size of the original cloud of gas, and the number of stars formed can vary too. As the sites of star formation, the formed stars are sometimes known as a young, loose cluster. Some nebulae are formed as the result of supernova explosions, the death throes of massive, short-lived stars. The material thrown off from the supernova explosion is ionized by the supernova remnant. One of the best examples of this is the Crab Nebula, in Taurus. It is the result of a recorded supernova, SN 1054, in the year 1054 and at the centre of the nebula is a neutron star, created during the explosion.

Other nebulae may form as planetary nebulae. This is the final stage of a low-mass star's life, like Earth's Sun. Stars with a mass up to 8-10 solar masses evolve into red giants and slowly lose their outer layers during pulsations in their atmospheres. When a star has lost a sufficient amount of material, its temperature increases and the ultraviolet radiation it emits is capable of ionizing the surrounding nebula that it has thrown off. It is 97% Hydrogen and 3% Helium. The main goal in this stage is to achieve equilibrium