Proper documentation is crucial in agile software development, as it ensures efficiency, effectiveness, and success for engineering teams. Documentation serves various purposes such as knowledge transfer, reproducibility of issues, compliance and auditing, continuous improvement, risk management, training and onboarding, and historical reference. Different types of project documentations include mind maps, diagrams, wiki page information, videos, charts, powerpoint presentations, etc. Documentation helps maintain transparency, enables reproducibility of issues, assists in auditing reasons, promotes continuous improvement, aids training and onboarding, and supports risk management strategies. Tools like Mind Map applications, Excalidraw, Miro, Microsoft applications, Wiki pages, Asana, and Confluence can be used for documentation purposes.