XML Schema is a powerful tool used to define the structure and rules for XML documents. It specifies the elements, attributes, and data types that can appear in an XML file, ensuring that the data adheres to a predefined format. This helps in validating the content of XML documents, making sure they are both accurate and consistent. By using XML Schema, developers can create more reliable data exchanges between systems. It allows for better data integrity and easier integration, as different applications can understand and process the XML data correctly. Overall, XML Schema plays a crucial role in data management and interoperability.