Automating infrastructure with AWS CloudFormation simplifies resource management by leveraging Infrastructure as Code (IaC).CloudFormation benefits include automation, scalability, consistency, cost efficiency, and error reduction.Key components of CloudFormation include templates, stacks, StackSets, and Change Sets.Setting up CloudFormation involves creating an AWS account, setting up an IAM role, and accessing it via the AWS Management Console.CloudFormation templates in JSON or YAML define infrastructure resources and their configurations.Deploying a CloudFormation stack involves writing a template, creating a stack, configuring details, reviewing, and deploying it.Advanced CloudFormation features include Nested Stacks for modularization and Change Sets for previewing updates.Best practices include parameterizing templates, organizing resources, enabling rollbacks, tagging resources, and validating templates.Common CloudFormation challenges include stack rollback, template errors, and IAM permission issues.CloudFormation offers an automated approach to infrastructure management, making it a valuable tool for DevOps engineers.