The Photodetector Array Camera and Spectrometer (PACS) is one of the three science instruments on ESAs far infrared and submillimetre observatory. It employs two Ge:Ga photoconductor arrays (stressed and unstressed) with 16x25 pixels, each, and two filled silicon bolometer arrays with 16x32 and 32x64 pixels, respectively, to perform integral-field spectroscopy and imaging photometry in the 60-210mu m wavelength regime. In photometry mode, it simultaneously images two bands, 60-85mu m or 85-125mum and 125-210mu m, over a field of view of ~1.75x3.5, with close to Nyquist beam sampling in each band. In spectroscopy mode, it images a field of 47x47, resolved into 5x5 pixels, with an instantaneous spectral coverage of ~1500km/s and a spectral resolution of ~175km/s. We summarise the design of the instrument, describe observing modes, calibration, and data analysis methods, and present our current assessment of the in-orbit performance of the instrument based on the Performance Verification tests. PACS is fully operational, and the achieved performance is close to or better than the pre-launch predictions.