XCOPY is a command-line utility in Microsoft Windows that allows users to copy files and directories from one location to another. It is more powerful than the basic COPY command, as it can handle entire directory trees and offers options for copying attributes, such as file timestamps and permissions. The command is often used for backup purposes or to transfer large amounts of data efficiently. Users can specify various parameters, such as whether to copy hidden files or to exclude certain files, making it a versatile tool for file management in a Windows environment.