Pandas is an open-source Python library that provides data structures and data analysis tools. It allows users to load, clean, manipulate, and visualize data in an efficient way. Pandas contains powerful data structures like Series (1D), DataFrame (2D), and Panel (3D). DataFrame is the most commonly used data structure, as it represents data as columns and rows like a spreadsheet or SQL table. Pandas enables fast and easy data analysis and is widely used in domains like finance, economics, and analytics.