Retrofit is a library that transforms HTTP APIs into Java interfaces. It simplifies HTTP calls by allowing developers to define API endpoints as method calls and handles serialization of responses to POJOs. Retrofit abstracts away the complexities of making HTTP requests and responses, making network calls simpler and easier to manage. It supports synchronous and asynchronous calls, handles errors gracefully, and allows pluggable HTTP clients and converters. Overall, Retrofit cleans up network code and makes communicating with APIs more straightforward.