Libtool is a software utility that helps manage the creation of shared libraries in a consistent manner across different operating systems. It simplifies the process of compiling and linking code by providing a unified interface, allowing developers to focus on writing code rather than dealing with platform-specific details. By using Libtool, developers can create portable libraries that work seamlessly on various systems, such as Linux, macOS, and Windows. This tool is particularly useful in large projects where multiple libraries are involved, ensuring that the build process remains efficient and reliable regardless of the underlying platform.