Flutter 3.7 is an update to Google's open-source framework for building cross-platform mobile applications, enhancing developer capabilities with new features like menu bars, an impeller rendering engine, and improved memory management tools. The update also facilitates easier internationalization and swift migration for plugins, allowing for richer UI experiences and better text handling. Overall, Flutter 3.7 aims to optimize performance and streamline the development process, making it a preferred choice for many developers.