Template literals are a feature in JavaScript that allow for easier string creation and manipulation. They are enclosed by backticks (`` ` ``) instead of single or double quotes. This enables multi-line strings and the inclusion of embedded expressions, making it simpler to create complex strings. You can insert variables or expressions directly into a template literal using the `$expression` syntax. This means you can easily combine text and variables without needing to use concatenation operators like `+`. Overall, template literals enhance readability and maintainability in your code.