An Interrupt Controller is a hardware component in a computer system that manages interrupt signals from various devices. When a device, like a keyboard or mouse, needs the CPU's attention, it sends an interrupt signal. The interrupt controller prioritizes these signals and informs the CPU which device requires processing, ensuring efficient handling of multiple requests. By managing interrupts, the controller helps maintain system performance and responsiveness. It allows the CPU to focus on executing tasks while still being able to respond quickly to important events. This is crucial for smooth operation in systems with multiple peripherals, such as computers, servers, and embedded systems.