Node.js is a 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 multiple concurrent connections efficiently. Some key features of Node.js include asynchronous I/O, an event-driven model, callbacks, and the npm package manager. While Node.js has advantages like scalability, it is single-threaded and lacks standard libraries, making it best suited for real-time applications like chat and games rather than CPU-intensive tasks.