The `__str__` method in Python is a special function that defines how an object is represented as a string. When you use the `print()` function or convert an object to a string using `str()`, Python calls this method. It allows developers to provide a human-readable format for their objects, making it easier to understand their content when printed. By overriding the `__str__` method in a class, you can customize the output for instances of that class. For example, if you have a class called `Car`, you might want the `__str__` method to return a string that includes the car's make and model, enhancing clarity when displaying the object.