Traceroute is a network diagnostic tool used to track the path that data packets take from one computer to another over the internet. It works by sending a series of packets with increasing time-to-live (TTL) values, which allows it to identify each hop along the route. Each hop represents a router or device that the data passes through, providing insight into the network's structure and performance. By analyzing the results of a Traceroute command, users can identify delays or issues at specific points in the network. This information is valuable for troubleshooting connectivity problems and optimizing network performance, helping both individuals and organizations maintain efficient communication.