# Set the character which will be used to indicate the end of a line.
local $/ = "\n";

# Open the file for read access:
open my $filehandle, '<', 'myfile.txt';

# Loop through each line:
while (<$filehandle>)
{
  # The text of the line, including the linebreak
  # is now in the variable $_.

  # Strip the linebreak character at the end.
  chomp;

  # Do something with the line.
  do_something($_);

  # Perhaps bail out of the loop
  if (m/^ERROR/)
  {
    warn "Error on line $. - skipping rest of file";
    last;
  }
}