Diuretics are drugs that increase urine output by altering sodium handling in the kidneys, leading to increased water excretion. They are therapeutically applied in conditions such as hypertension, heart failure, and edema, with various classifications including thiazide derivatives and loop diuretics. Common side effects of diuretics include nausea, dizziness, and muscle cramps, while serious effects can involve dehydration and electrolyte imbalances.