Test-driven development (TDD) involves writing unit tests before writing application code. TDD promotes writing high-quality code and prevents regressions. It follows a "red-green-refactor" process of writing a failing test, making it pass by writing minimal code, and refactoring the code. Unit test frameworks allow automating tests and isolating code dependencies using techniques like stubs, fakes, and mocks. Tests should be organized into test classes and follow a lifecycle of setup, execution, and teardown.