The `COUNT(DISTINCT column)` function in SQL is a powerful tool for counting unique values in a specific column of a table. Unlike the standard `COUNT()` function, which counts all rows, `COUNT(DISTINCT column)` only counts each unique value once. This is particularly useful when you need to know the number of distinct items, such as the number of unique product names, customer IDs, or order numbers. It's a fundamental aggregate function used in various database queries. For example, in an e-commerce database, you might want to know the total number of unique products sold. Using `COUNT(DISTINCT product_name)` would give you that precise count. This function is also crucial for data analysis, reporting, and business intelligence tasks. It helps in understanding the variety and breadth of data within a dataset.