The document discusses the chain rule, which is used to find the derivative of composite functions. It provides examples of applying the chain rule to functions of the form f(g(x)) by taking the derivative of the outside function with respect to the inside function, and multiplying by the derivative of the inside function with respect to x. The chain rule can be used repeatedly when a function is composed of multiple nested functions. Derivative formulas themselves incorporate the chain rule. The chain rule is essential for finding derivatives and is the most common mistake made by students on tests.