Algebra tiles are manipulatives that represent monomial terms in polynomials, allowing students to physically perform operations like addition, subtraction, multiplication, and factoring. Key tiles are: squares for x^0 terms, rectangles for x^1 terms, and larger squares for x^2 terms, with corresponding red tiles representing negative coefficients. Examples show using the tiles to work through problems like -2x^2 + x - 3 and factoring x^2 - 3x + 2. The document provides a hands-on approach to learning algebra using physical representations of monomial terms.