Water of crystallization is the amount of water molecules which are present in one formula unit of salt. We can also say that the water molecules which form part of a structure of a crystal are called water of crystallization. They give the crystals their shape and crystal.
Example :
CuSO4.5H2O (Copper sulphate)- it is used as an antiseptic and as an antifungal agent for topical use.
CaSO4.2H2O (Calcium sulphate)- it is used in the manufacture of Plaster of Paris and also used in tofu as a coagulant.