A microcontroller is a compact integrated circuit with a microprocessor, memory, and I/O ports designed for specific control functions, offering advantages over microprocessor systems in cost and application diversity. The document details the Intel 8051 microcontroller, highlighting its specifications, memory architecture, and comparisons with other models like 8048 and 8052. It concludes with various applications of microcontrollers in devices such as keyboards, toys, and home security systems.