Livewire is a full-stack framework for building dynamic web applications using the Laravel PHP framework. It allows developers to create interactive user interfaces without writing extensive JavaScript, making it easier to manage state and handle user interactions directly in PHP. With Livewire, components are created as PHP classes, which can be easily integrated into existing Laravel applications. This approach simplifies the development process by allowing developers to focus on server-side logic while still delivering a responsive user experience, bridging the gap between traditional server-rendered applications and modern single-page applications.