A component is a reusable and independent part of a software system that performs a specific function or task. Components are designed to be modular, meaning they can be easily integrated into different parts of a system without affecting other components. Components help in simplifying the development process, improving code reusability, and enhancing the overall maintainability of a software system. Examples of components include buttons, input fields, dropdown menus, and other user interface elements in a graphical user interface application.