Graphs are non-linear data structures composed of vertices and edges used to represent connections between entities, with types including directed, undirected, and weighted graphs. Key algorithms for graph traversal include Depth-First Search (DFS) and Breadth-First Search (BFS), while Dijkstra's algorithm is utilized for finding the shortest path and Kruskal's and Prim's algorithms are used to create minimal cost spanning trees. Graphs have various real-life applications, such as in network design and mapping services.