The Collaborative International Dictionary of English v.0.48:

parody \par"o*dy\ (p[a^]r"[-o]*d[y^]), n.; pl. Parodies
   (p[a^]r"[-o]*d[i^]z). [L. parodia, Gr. parw,di`a; para`
   beside + 'w,dh` a song: cf. F. parodie. See Para-, and
   Ode.]
   [1913 Webster]
   1. A writing in which the language or sentiment of an author
      is mimicked; especially, a kind of literary pleasantry, in
      which what is written on one subject is altered, and
      applied to another by way of burlesque; travesty.
      [1913 Webster]

            The lively parody which he wrote . . . on Dryden's
            "Hind and Panther" was received with great applause.
                                                  --Macaulay.
      [1913 Webster]

   2. A popular maxim, adage, or proverb. [Obs.]
      [1913 Webster]

The Collaborative International Dictionary of English v.0.48:

parody \par"o*dy\, v. t. [imp. & p. p. parodied; p. pr. & vb.
   n. parodying.] [Cf. F. parodier.]
   To write a parody upon; to burlesque.
   [1913 Webster]

         I have translated, or rather parodied, a poem of
         Horace.                                  --Pope.
   [1913 Webster]

WordNet (r) 3.0 (2006):

parody
    n 1: a composition that imitates or misrepresents somebody's
         style, usually in a humorous way [syn: parody, lampoon,
         spoof, sendup, mockery, takeoff, burlesque,
         travesty, charade, pasquinade, put-on]
    2: humorous or satirical mimicry [syn: parody, mockery,
       takeoff]
    v 1: make a spoof of or make fun of
    2: make a parody of; "The students spoofed the teachers" [syn:
       spoof, burlesque, parody]