Subclassing is a process where a new class is derived from an old one to facilitate code reuse. It allows methods to be overridden to extend or modify the behavior of the parent class. In many object-oriented languages, subclassing implies subtyping such that subclasses must adhere to the contract of the parent class. However, in some languages subclassing does not require subtyping, allowing for more flexibility in code reuse without breaking type compatibility. Inheritance provides a mechanism for code reuse similar to include statements with overriding capabilities.