The 555 timer IC is a versatile integrated circuit used in timer, pulse generation, and oscillator applications. It contains transistors, resistors, and diodes on a silicon chip. The 555 can be used in monostable, bistable, and astable modes to generate pulses or oscillations. It is commonly used in applications like blinking LEDs, timers, oscillators, and more due to its low cost, ease of use, and stability.