Pandas is a Python library used for working with datasets and analyzing data. It allows users to clean messy datasets, explore and manipulate data, and draw conclusions from large datasets based on statistical analysis. Pandas provides functions and methods for loading data from files like CSV and JSON files into DataFrames. DataFrames are the primary data structure in Pandas and act like a 2D spreadsheet with rows and columns. Users can view, clean, and analyze data in DataFrames to gain insights.