MapReduce provides an effective framework for processing large datasets in a distributed environment. It addresses challenges of storing and processing big data by breaking jobs into independent map and reduce tasks that can run in parallel across multiple machines without requiring shared memory or state. The map tasks split input data and emit key-value pairs, which are then sorted and grouped by the framework before being passed to reduce tasks to generate final output. This allows problems to be solved in a scalable, fault-tolerant manner.