FLARM is a proprietary electronic system used to selectively alert pilots to potential collisions between aircraft. It is not formally an implementation of ADS-B, as it is optimized for the specific needs of light aircraft, not for long-range communication or ATC interaction. FLARM is a portmanteau of "flight" and "alarm". The installation of all physical FLARM devices is approved as a "Standard Change", and the PowerFLARM Core specifically as a "Minor Change" by the European Union Aviation Safety Agency; and in addition the Minor Change also approves the PowerFLARM Core for its IFR and at night.

FLARM obtains its position and altitude readings from an internal GPS and a barometric sensor and then broadcasts this together with forecast data about the future 3D flight track. At the same time, its receiver listens for other FLARM devices within range and processes the information received. Advanced motion prediction algorithms predict potential conflicts for up to 50 other aircraft and alert the pilot using visual and aural warnings. FLARM has an integrated obstacle collision warning system together with an obstacle database. The database includes both point and segmented obstacles, such as split power lines and cableways.

Unlike conventional transponders, FLARM has low power consumption and is relatively inexpensive to purchase and install. Furthermore, conventional Airborne Collision Avoidance Systems (ACAS) are not effective in preventing light aircraft from colliding with each other as light aircraft can be close to each other without danger of collision. ACAS would issue continuous and unnecessary warnings about all aircraft in the vicinity, whereas FLARM only issues selective warnings about collision risks.

FLARM Technology and the inventors of FLARM have won several awards. The Swiss Office of Civil Aviation (FOCA) also published in Dec 2010: "The rapid distribution of such systems only a few months after their introduction was not accomplished through regulatory measures, but rather on a voluntary basis and as a result of the wish on the part of the involved players to contribute towards the reduction of collision risk. The FOCA recommends that glider tow planes and helicopters that operate in lower airspace should also use collision warning systems."

In addition, FLARM is mandatory on gliders in several countries including France,^{[citation needed]} and the Soaring Society of America (SSA) strongly recommends FLARM in lieu of ADS-B Out.

Versions are sold for use in light aircraft, helicopters, and gliders. Newer PowerFLARM models extend the FLARM range to over 10 km. They also have an integrated ADS-B and transponder Mode-C/S receiver, making it possible to also avoid mid-air collisions with large aircraft.

Newer devices can also act as authorized flight recorders by producing files in the IGC format defined by the FAI Gliding Commission. All FLARM devices can be connected to FLARM displays or compatible avionics (EFIS, moving map, etc.) to give visual and audio warnings and also to show the intruder's position on the map. Licensed manufacturers produce integrated FLARM devices in different avionics products. FLARM devices can issue spoken warnings similar to TCAS.

A typical FLARM system consists of the following hardware components: