Bicubic Interpolation is a mathematical method used to estimate pixel values in digital images. It works by considering the closest 16 pixels (a 4x4 grid) around the target pixel and using their values to calculate a new pixel value. This technique provides smoother and more visually appealing results compared to simpler methods like bilinear interpolation. This method is commonly used in image processing tasks such as resizing and rotating images. By taking into account the surrounding pixels, bicubic interpolation helps maintain image quality and reduces artifacts, making it a popular choice in software applications like Adobe Photoshop and GIMP.