There are two parts to this. First is, "What is the physical significance of a wave function?" Secondly, "Why do we normalize it?"To address the first:In the Wave Formulation of quantum mechanics the wave function describes the state of a system by way of probabilities. Within a wave function all 'knowable' (observable) information is contained, (e.g. position (x), momentum (p), energy (E), ...). Connected to each observable there is a corresponding operator [for momentum: p=-i(hbar)(d/dx)]. When the operator operates onto the wave function it extracts the desired information from it. This information is called the eigenvalue of the observable... This can get lengthy so I'll just leave it there. For more information I suggest reading David Griffith's "Introduction to Quantum Mechanics". A