Docker Compose is a tool that simplifies the management of multi-container Docker applications. It allows developers to define and run multiple containers using a single configuration file, typically named `docker-compose.yml`. This file specifies the services, networks, and volumes needed for the application, making it easier to set up and maintain complex environments. With Docker Compose, users can start all the services defined in the configuration file with a single command. This streamlines the development process, as developers can quickly spin up or tear down entire applications, ensuring consistency across different environments and simplifying collaboration among team members.