SBT (Simple Build Tool) is a build tool for Scala and Java applications. It is used to compile code, create artifacts, manage dependencies, run tests, and more. SBT projects have a standard directory structure and are configured using a build.sbt file or Build.scala file where settings like the name, version, dependencies, and other configurations are defined. SBT supports features like incremental compilation, cross building for multiple Scala versions, and publishing artifacts to repositories.