Subqueries, also known as nested queries, are SQL queries embedded inside another SQL query. They are a powerful tool for filtering and retrieving data based on conditions that are more complex than a single WHERE clause can handle. Subqueries can be used in the WHERE, HAVING, SELECT, and FROM clauses. They are particularly useful when you need to perform calculations or comparisons within the main query. For example, finding all customers who have placed orders exceeding the average order value. Subqueries can be used to retrieve data from a single table or multiple tables, making them versatile for various data manipulation tasks. Understanding subqueries is crucial for writing efficient and sophisticated SQL queries.