I had written about this back in 2006, but it’s worth mentioning again because someone has created this pellucid diagram: Buffalo buffalo Buffalo buffalo buffalo buffalo Buffalo buffalo is a grammatical English sentence. It means something like “Bison residing in Buffalo, New York, feeling themselves intimidated by their fellows, visit a similar fate upon yet others of their local ilk.”
I’d attributed it to linguist William J. Rapaport, but apparently it’s arisen independently at least three times, first (it is believed) by wordplay maven Dmitri Borgmann, in 1965.