AWS App Mesh is a service mesh that provides visibility and traffic controls for microservices applications. It consists of proxies, virtual nodes, services and routers. The document describes adding App Mesh to an example application with two services - serviceA and serviceB. It involves creating a mesh, virtual services for each service, virtual nodes pointing to the actual services, and a virtual router with routes to distribute traffic between the nodes. This allows controlling and splitting traffic between versions without code changes.