Test Driven Development (TDD) is an approach where test cases are written before functional code to think about how components should work. It follows the principles of Red-Green-Refactor, writing a test (Red), then the functional code to pass the test (Green), then refactoring the code. TDD leads to well-designed, loosely coupled code with full test coverage that is easy to maintain and refactor with confidence in changes. While it may initially take longer, TDD finds bugs earlier and reduces bugs by 45-90%, saving significant time versus fixing issues late in development.