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This isn't an urban word, for one thing, but if the front page suggestion insists...

A group of persons forming a cohesive, usually contentious minority within a larger group.

The teams in the PC game, Alpha Centauri, are factions
Faction eradicated. Lady Deidre Skye has been captured and is awaiting your interrogation.
faction by Kenthar November 9, 2003
A term used to describe an orgaization or guild. Usually used in RPGs.
The Steel Faction is a dangerous group of cocksmokers.
Faction by Logan November 10, 2003
A half-truth; a combination of the words 'fact' and 'fiction'.
Politicians use many factions to divert from telling the complete truth.
Faction by Leif Ericson May 30, 2006
A group sharing similar views, usually against other groups. Factions can be sports related, political, or social.
The FARC is a faction fighting the Colombian government due to political differences.
faction by Max November 9, 2003
n. A group of people who express a shared belief or opinion different from people who are not part of the group. Usually the people in this group do not let others in unless they can somehow prove that they share similar interests and/or beliefs

One example of factions is all of the high school subcultures eg. Preppies, Nerds, Jocks, Bullies, Townies, Hackers etc.

Pronounced as fækʃən
Which faction are you from?
faction by Me, Myself & I December 28, 2006
I just picked up the new Liquid force faction wakeskate. its cheap but it rides so smooth!
Faction by Lf rider May 30, 2008