Plasmids are small, circular DNA molecules that replicate independently and carry beneficial genes, such as those providing antibiotic resistance, mainly in bacteria. They are utilized in molecular biology as tools for cloning, transferring, and manipulating genes, with several types, including cloning, expression, and gene knock-down plasmids. Additionally, specific plasmids like pBR322 and phagemids such as pBluescript are important for producing recombinant DNA and conducting various genetic studies due to their unique features allowing efficient cloning and selection processes.