Encapsulation is a fundamental concept in object-oriented programming that involves bundling the data (attributes) and methods (functions) that operate on that data into a single unit, known as a class. This approach helps to restrict direct access to some of an object's components, which can prevent unintended interference and misuse of the data. By using encapsulation, developers can create a clear interface for interacting with an object while hiding its internal workings. This promotes better organization of code and enhances maintainability, as changes to the internal implementation can be made without affecting other parts of the program that rely on the object's interface.