I just found this handy list of concise definitions of each paramita on Rigpa Wiki, an invaluable online source of information on Buddhist terms and categories. If you click on the first link above, you’ll see that the definition of wisdom (Skt. prajna, Tib. sherab, literally “highest knowledge”) in the context of the six paramitas is “the perfect discrimination of all phenomena, all knowable things.” It is sometimes called the paramita of discriminating awareness or wisdom-knowledge to distinguish it from the other kind of wisdom (Tib. yeshe), primordial wisdom, also known as timeless awareness, our fundamental, innate wisdom nature that we gradually awaken to on the path of practicing the six paramitas.
Everyone has this innate primordial wisdom-awareness; the point of the path is to learn to recognize, access, and spontaneously operate from it, as the Buddha did. An essential stage of that process is acquiring the wisdom of discriminating awareness, also known as “the wisdom that recognizes emptiness,” which is the true nature of all phenomena. The paramita of wisdom is the perfection of the realization of emptiness in our own direct experience. When it is perfected, we reach the first bhumi, or official bodhisattva level, which is the third of the five stages of the path to buddhahood, known as “the path of seeing.” If you’d like to know more about the five paths and the ten bodhisattva levels, Rigpa Wiki has those too! (Gampopa and Ringu Tulku have more detailed explanations.) When we attain the path of seeing, that is, when we come to directly see things as they really are — their empty aspect — there are still 9 bodhisattva levels of increasing refinement to go, but it’s the beginning of living from our innate wisdom (yeshe).
All this nerdy preamble is essential infrastructure for those who wish to attain awakening to the true nature of ourselves and everything that happens to us. You can read much better explanations of the wisdom paramita in the books linked above, among other sources, and I highly recommend them for all practitioners. Here I’ll limit myself to a concise, bare-bones outline of the main points:
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