Node.js is an open-source JavaScript runtime environment that allows JavaScript to be used for server-side scripting. It uses non-blocking I/O and event-driven architecture, allowing it to handle a large number of simultaneous connections efficiently. Popular modules like Express make it easy to build scalable web servers and applications. Stylus and CoffeeScript provide CSS-like and Pythonic syntax respectively to make coding in Node.js more intuitive. Many large companies now use Node.js for building real-time web applications.