Properties files in Mule are used to store default values and static values that are used throughout a Mule application to keep things well organized. Configuring a properties file in Mule is easy - you create a new file in the src/main/resources folder to hold environment-specific values like dev, prod, staging, etc. that can then be initialized and referenced in the mule-project.xml file or mule-app.properties file to make configurations like HTTP and JMS more configurable.