A Bilateral Filter is an image processing technique used to smooth images while preserving edges. It works by averaging the pixels in a neighborhood, taking into account both the spatial distance and the intensity difference between pixels. This dual consideration helps maintain sharp edges while reducing noise. The filter operates by applying a Gaussian function in both the spatial domain and the intensity domain. The result is a filtered image that retains important features, making it useful in various applications such as photography, computer vision, and medical imaging.