Chapter 4 of 'Operating System Concepts' discusses threads as fundamental units of CPU utilization, focusing on multithreading models, APIs for various thread libraries, and operating system support. It covers the benefits of multithreading, issues related to thread management, and methods for implicit threading. Additionally, it highlights different threading models, such as one-to-one and many-to-many, and explores user and kernel thread implementations across operating systems like Windows and Linux.