Vagrant allows users to define and configure lightweight virtual development environments. It uses VirtualBox to run virtual machines from a Vagrantfile configuration. The document discusses how Vagrant abstracts hardware, allows multiple operating systems to run concurrently on virtual hardware, and is limited by physical resources. It also outlines how in 3 lines users can download a base box, initialize a new Vagrant project, and boot the virtual machine. Key benefits of Vagrant include quick setup for new team members, ability to version control server configurations, and easy switching between projects.