Temporary tables are a powerful tool in SQL for holding data temporarily. They are ideal for storing intermediate results of complex queries or for performing operations that require data to be available only within a specific session. Unlike permanent tables, temporary tables are not stored in the database permanently. They are created and used within a single session and are automatically dropped when the session ends. This means you don't need to explicitly delete them, saving you time and effort. Temporary tables can be a significant performance boost when dealing with large datasets, as they can avoid redundant data retrieval from permanent tables. They are also useful for testing and prototyping queries without affecting the permanent database structure.