The Common Language Runtime (CLR) is a core component of the .NET Framework that manages the execution of .NET applications. It provides essential services such as memory management, security, and exception handling, allowing developers to focus on writing code without worrying about the underlying complexities. CLR enables interoperability between different programming languages, meaning that code written in one language can work seamlessly with code written in another. This is achieved through a common set of libraries and a unified type system, which simplifies the development process and enhances code reusability across various applications.