A greedy algorithm is a problem-solving approach that makes the best choice at each step, aiming for a local optimum. It works by selecting the option that seems the most beneficial at the moment, without considering the overall problem. This method is often used in optimization problems, such as finding the shortest path or maximizing profit. While greedy algorithms can be efficient and straightforward, they do not always guarantee the best overall solution. In some cases, they may lead to suboptimal results, as they do not account for future consequences of current choices. Examples include the Kruskal's algorithm for minimum spanning trees and the Dijkstra's algorithm for shortest paths.