RAID (Redundant Array of Inexpensive Disks) is a method of combining multiple hard disk drives into a logical unit to increase performance and provide fault tolerance. It duplicates and spreads data across disks so that if one disk fails, the data can still be accessed from another disk. RAID offers real-time data recovery when a drive fails to increase system uptime. It also improves performance by allowing multiple disks to work together simultaneously. Common RAID levels include RAID 0, 1, 5, and 10, each providing different balances of performance, capacity, and data protection.