Multilevel queue scheduling divides processes into groups based on properties like type and resource usage. These groups are placed into multiple queues, each with a different priority level. Higher priority queues like the system process queue use scheduling algorithms like FCFS, while lower priority queues like the student process queue use priority scheduling. This approach allows different scheduling optimizations based on the process type compared to a single queue approach. A disadvantage is the potential for lower priority processes to starve if higher priority processes monopolize resources.