Kosaraju's Algorithm is a method used to find the strongly connected components (SCCs) of a directed graph. It operates in two main phases: first, it performs a depth-first search (DFS) to determine the finishing order of the vertices. This order helps in identifying the SCCs in the second phase. In the second phase, the algorithm reverses the graph's edges and performs another DFS based on the finishing order from the first phase. Each DFS traversal identifies one strongly connected component, allowing the algorithm to efficiently group vertices that are mutually reachable.