A milestone is a significant/key event in the project usually marked by the completion of a major deliverable. It is a flag in the work plan to signify some other work has completed. 
A milestone has duration of zero and no effort. Milestones are essential to manage and control a project, but there is no task associated with it (although preparing a milestone can involve significant work).
Usually a milestone is used as a project checkpoint to validate how the project is progressing and revalidate work. Milestones are also used as high-level snapshots for management to validate the progress of the project. In many cases there is a decision to be made at a milestone.
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