Definitions

from The American Heritage® Dictionary of the English Language, 4th Edition

  • n. A computer program, usually running over the Internet, that allows multiple users to participate in virtual-reality role-playing games.

from Wiktionary, Creative Commons Attribution/Share-Alike License

  • An interactive online environment in which players may jointly engage in fantasy role-playing games.

Etymologies

m(ulti-)u(ser) d(ungeon), m(ulti-)u(ser) d(imension) and m(ulti-)u(ser) d(omain).
(American Heritage® Dictionary of the English Language, Fourth Edition)
From Multi-User Dungeon (Wiktionary)

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