Sails is an MVC framework for Node.js that provides features like real-time functionality using WebSockets, an ORM, policies for authentication and authorization, and asset bundling with support for tools like Grunt. It generates RESTful routes and APIs for models and has a similar MVC structure to frameworks like Rails. An example app is created using the sails command line interface to generate a Product model and controller and demonstrate basic CRUD operations and real-time updates. The Sails community is growing rapidly and the framework is approaching production readiness.