Declaration merging is the process where the compiler merges two or more declarations with the same name into a single definition. Declarations can create namespaces, types, or values. Interface merging joins the members of interface declarations with the same name into a single interface, requiring unique members. Namespace merging combines exported functions or classes from namespaces with the same name. Declaration merging also allows merging namespaces with classes or functions by referencing properties and values from the namespace. However, classes cannot merge with other classes or variables in TypeScript.