SQL/PSM (SQL/Persistent Stored Modules) is an ISO standard mainly defining an extension of SQL with a procedural language for use in stored procedures. Initially published in 1996 as an extension of SQL-92 (ISO/IEC 9075-4:1996, a version sometimes called PSM-96 or even SQL-92/PSM), SQL/PSM was later incorporated into the multi-part SQL:1999 standard, and has been part 4 of that standard since then, most recently in SQL:2011. The SQL:1999 part 4 covered less than the original PSM-96 because the SQL statements for defining, managing, and invoking routines were actually incorporated into part 2 SQL/Foundation, leaving only the procedural language itself as SQL/PSM. The SQL/PSM facilities are still optional as far as the SQL standard is concerned; most of them are grouped in Features P001-P008.
SQL/PSM standardizes syntax and semantics for control flow, exception handling (called "condition handling" in SQL/PSM), local variables, assignment of expressions to variables and parameters, and (procedural) use of cursors. It also defines an information schema (metadata) for stored procedures. SQL/PSM is one language in which methods for the SQL:1999 structured types can be defined. The other is Java, via SQL/JRT.
In practice MySQL's procedural language and IBM's SQL PL (used in DB2) are closest to the SQL/PSM standard.
SQL/PSM resembles and inspired by PL/SQL, as well as PL/pgSQL, so they are similar languages. With PostgreSQL v9 some SQL/PSM features, like overloading of SQL-invoked functions and procedures are now supported. A PostgreSQL addon implements SQL/PSM (alongside its own procedural language), although it is not part of the core product.