The `COUNT DISTINCT` function is a powerful tool in SQL for obtaining the number of unique values in a particular column. It's often used in data analysis to understand the variety of data present. For example, in a customer database, you might want to know how many different countries your customers are from. `COUNT DISTINCT` is the perfect solution. Unlike the standard `COUNT` function, which counts all rows, `COUNT DISTINCT` only counts each unique value once. This is essential for accurate reporting and analysis, especially when dealing with repeated data entries. For instance, if a product name appears multiple times in an inventory table, `COUNT` would count each occurrence, while `COUNT DISTINCT` would only count the product name once. This function is highly versatile and can be used in conjunction with other SQL functions and clauses to perform more complex calculations and analyses. It's a fundamental building block for data summarization and reporting.