The Phong reflection model is a widely used technique in computer graphics for simulating the way light interacts with surfaces. It combines three components: ambient, diffuse, and specular reflection. Ambient reflection represents the general light in the environment, diffuse reflection simulates the scattering of light on rough surfaces, and specular reflection models the shiny highlights seen on smooth surfaces. This model helps create realistic images by calculating how light reflects off objects based on their material properties and the viewer's perspective. By adjusting parameters like shininess and color, artists can achieve various visual effects, enhancing the overall realism of 3D scenes.