Phonemic awareness centers around learning to utilize and understand each individual sound (phoneme) in spoken language.
A good way to test someone's phonemic awareness, is to ask them what sound is in various parts of words. For example, "What is the last sound in dog?" "What is the middle sound in Fish?"
Phonemic awareness helps children learn to spell and improves reading comprehension.
Phonemic awareness is most effective when a teacher utilizes small group instruction and provides letters that students can manipulate to create phonemes.