We introduce a shifted analog of the plactic monoid of Lascoux and Schützenberger, the shifted plactic monoid. It can be defined in two different ways: via the shifted Knuth relations, or using Haiman's mixed insertion. Applications include: a new combinatorial derivation (and a new version of) the shifted Littlewood-Richardson Rule; similar results for the coefficients in the Schur expansion of a Schur P-function; a shifted counterpart of the Lascoux-Schützenberger theory of noncommutative Schur functions in plactic variables; a characterization of shifted tableau words; and more.