Cambium is a layer of tissue in plants located between the bark and the wood. It plays a crucial role in the growth of trees and shrubs by producing new cells that contribute to the thickness of the stem and roots. This process is essential for the plant's ability to transport nutrients and water. In addition to its role in growth, cambium is responsible for the formation of xylem and phloem. Xylem carries water and minerals from the roots to the leaves, while phloem transports sugars produced during photosynthesis. Together, these functions support the overall health and development of the plant.