A* is a popular pathfinding and graph traversal algorithm used in computer science and artificial intelligence. It efficiently finds the shortest path from a starting point to a target point by combining features of both Dijkstra's algorithm and Greedy Best-First Search. The algorithm uses a cost function that considers both the distance traveled and an estimated distance to the goal. The key components of the A* algorithm are its open and closed lists. The open list contains nodes to be evaluated, while the closed list holds nodes that have already been examined. By selecting the most promising node based on the cost function, A* systematically explores paths, ensuring an optimal solution is found.