What are fragments?
You can read more about fragments in
http://developer.android.com/guide/components/fragments.html
Creating fragments
Like Activities,fragments also have their Life cycle callback methods.
To create a fragment you need to override at least its "onCreateView(Bundle)".This method has to return a view and that view is the root of your fragments layout.
Steps to create fragments
Step1:Create a layout XML file(simple_text_fragment.xml)
---------------------------------------------------------------------------------------------
<?xml version="1.0" encoding="utf-8"?>
<LinearLayout xmlns:android="http://schemas.android.com/apk/res/android"
 android:layout_width="match_parent"
 android:layout_height="match_parent"
 android:orientation="vertical" >
    <TextView
     android:id="@+id/textView1"
     android:layout_width="wrap_content"
     android:layout_height="wrap_content"
     android:text="TextView" />
    <TextView
     android:id="@+id/textView2"
     android:layout_width="wrap_content"
     android:layout_height="wrap_content"
     android:text="Large Text"
     android:textAppearance="?android:attr/textAppearanceLarge" />
</LinearLayout>
---------------------------------------------------------------------------------------------
Step 2:Create a class that extends Fragment and Override its onCreateView method
---------------------------------------------------------------------------------------------
public  class Example_fragment extends Fragment {
 @Override
 public void onAttach(Activity activity) {
  super.onAttach(activity);
  Log.v("Fragments","onAttach");
 }
 @Override
 public void onCreate(Bundle savedInstanceState) {
  super.onCreate(savedInstanceState);
  Log.v("Fragments","onCreate");
 }
 @Override
 public View onCreateView(LayoutInflater inflater, ViewGroup container,
   Bundle savedInstanceState) {
  Log.v("Fragments","onCreateView");
                //1st Arg:Fragments Layout
               //2nd Arg:container(parent)
               //3rd Arg:Boolean arg indicating whether the fragment layout should be attached to       the viewGroup(2nd Arg).In our case,it is no as the system itself is doing it.
  return inflater.inflate(R.layout.simple_text_fragment,container,false);
 }
 @Override
 public void onStart() {
super.onStart();
  Log.v("Fragments","onStart");
}
 @Override
 public void onResume() {
super.onResume();
  Log.v("Fragments","onResume");
 }
 @Override
 public void onPause() {
  super.onPause();
  Log.v("Fragments","onResume");
 }
 @Override
 public void onStop() {
  super.onStop();
  Log.v("Fragments","onResume");
 }
 @Override
 public void onDestroyView() {
  super.onDestroyView();
 }
 @Override
 public void onDestroy() {
  super.onDestroy();
 }
 @Override
 public void onDetach() {
  super.onDetach();
 }
}
---------------------------------------------------------------------------------------------
Step 3:
In you parent layout's XML file include the below snippet 
---------------------------------------------------------------------------------------------
     <fragment 
      android:name="com.example.apidemo.Example_fragment"
      android:id="@+id/myfragment"
                android:layout_width="wrap_content"
                android:layout_height="match_parent"
      />
---------------------------------------------------------------------------------------------
Step 4:
Create Root Activity that inflates parents layout XML.
That's it.Your activity should  look something similar like this
Happy Coding,
-Rajeev


