Operator overloading in C++ allows operators to be redefined for user-defined types like classes. It simplifies writing expressions involving user-defined types. Operators can be overloaded as non-static member functions or global functions. Common operators like +, -, *, / can be overloaded to work with custom classes, allowing expressions like complex_number1 + complex_number2. Stream insertion and extraction operators << and >> are typically overloaded as global functions.