A camel toe is that outline of a chick's pussy lips when she's wearing too tight of panties or clothing. When the clothing is so tight that it clings to the outer labia forming a V shape with a slit up the middle. The shape of it looks like the foot of a camel or a "camel toe".

Some people have suggested that there is such a thing as a nude cameltoe, and although I love seeing a naked pussy as much as the next guy I feel that a true cameltoe must be covered with ultra tight clothing.