The 80386 introduced 32-bit processing to the 8086 family, improving performance. It had multiple internal units that operated in parallel. The 80386 came in several versions, including the full 80386DX and reduced bus 80386SX. In protected mode, the 80386 supported virtual memory, multitasking, and memory protection through descriptor tables, paging, and privilege levels. New features like control registers and the task register enabled these protected mode capabilities.