Thiazide diuretics work by inhibiting sodium-chloride co-transport in the distal convoluted tubule, which prevents reabsorption of sodium and chloride ions. This leads to increased excretion of sodium, chloride, potassium, and water in the urine, reducing blood pressure. Thiazide diuretics can also directly relax arterioles, further lowering blood pressure. However, they may cause side effects like hypokalemia, hyperglycemia, hyperuricemia, and hyperlipidemia. Thiazide diuretics are indicated for hypertension and edema but require monitoring due to their potential adverse effects.