A recursive algorithm is a method of solving a problem where the solution depends on solutions to smaller instances of the same problem. It typically involves a function calling itself with modified arguments until it reaches a base case, which is a simple instance that can be solved directly. This approach is often used in tasks like calculating factorials or traversing data structures like trees. One key aspect of recursive algorithms is their ability to break complex problems into simpler subproblems. However, they can be less efficient than iterative solutions due to the overhead of multiple function calls and potential stack overflow issues. Understanding recursion is essential for computer science concepts, including data structures and algorithm design.