The FTP Connector allows Mule applications to exchange files with an external FTP server by implementing a file transport channel. The FTP endpoint can be configured as an inbound endpoint to receive files or an outbound endpoint to write files to the FTP server. Configuring the FTP endpoint involves placing it in the Mule flow, and then configuring properties like the host, port, path, user and password on various tabs in the properties editor. An example flow retrieves files from an FTP server using an inbound FTP endpoint and writes them to a local directory using a file outbound endpoint.