The document explains the chain rule, which provides a method for finding the derivative of a composite function. The chain rule states that the derivative of a composite function f(g(x)) is equal to the derivative of the outside function f'(g(x)) multiplied by the derivative of the inside function g'(x). This allows the calculation of derivatives of more complex functions that cannot be solved using basic derivative rules. Several examples are provided to demonstrate how to use the chain rule to calculate derivatives of various composite functions.