Displacement mapping is a computer graphics technique used to create detailed textures on 3D models. It works by altering the surface of a model based on a grayscale image, where lighter areas push the surface outward and darker areas pull it inward. This allows for the simulation of complex details like bumps, grooves, and other surface features without increasing the model's polygon count. This technique is commonly used in video games and animation to enhance realism. By applying displacement mapping, artists can achieve intricate designs on surfaces, such as terrain, skin, or fabric, while maintaining efficient rendering performance.