React is a JavaScript library for building user interfaces. It uses a component-based approach where UI is broken into independent, reusable pieces called components. Components are like functions that return markup describing part of a view. React uses a virtual DOM to efficiently update the real DOM by only making necessary changes. This improves performance by avoiding expensive DOM operations and minimizing DOM access. Components receive data and callbacks through properties and local state is updated using setState(), triggering a re-render of changed parts of the UI.