Thread scheduling determines which thread runs next and for how long. It can be preemptive, where the operating system interrupts a running thread to run a higher priority one, or non-preemptive, where a running thread runs to completion. Various algorithms like round robin, shortest job first, and multilevel feedback queue offer different approaches to scheduling. Proper synchronization is also needed to avoid issues like race conditions and deadlocks. Overall, optimizing thread scheduling is important for system efficiency and responsiveness.