Traits in PHP allow for code reuse and multiple inheritance by defining reusable sets of methods that can be used in multiple classes. The document discusses using traits to define a permissions trait that implements magic methods like __call to control access to methods based on permissions. It provides an example of how to define a feature access control list, apply the permissions trait to a secured class, and throw exceptions when unauthorized methods are called. This allows restricting code execution to authorized users and tracking all method calls for security and analytics purposes.