Function overloading is a programming concept that allows multiple functions to have the same name but differ in parameters, such as the number or type of arguments. This enables developers to create more intuitive and readable code, as the same function name can be used for different purposes based on the context in which it is called. For example, in a programming language like C++, a function named `add` could be defined to handle both integers and floating-point numbers. When the function is called, the compiler determines which version to execute based on the arguments provided, enhancing flexibility and usability in code design.