Paracrine signaling is a form of cell communication where cells release signaling molecules that affect nearby cells. These molecules, known as ligands, diffuse through the extracellular space and bind to specific receptors on neighboring cells, leading to a response. This type of signaling is crucial for processes like tissue repair and immune responses. Unlike endocrine signaling, which involves hormones traveling through the bloodstream to distant targets, paracrine signaling operates over shorter distances. It allows for rapid and localized responses, making it essential for coordinating activities within tissues and organs, such as during development or in response to injury.