Threads are lightweight processes that exist within a single process and share resources like memory and files. They allow for parallel execution on multi-core systems through rapid context switching between threads on the CPU. While threads share many properties with processes, they are not fully independent and protection between threads is not guaranteed. User-level threads are managed in libraries rather than by the operating system kernel, while kernel-level threads are known and scheduled by the OS. Threads provide advantages over processes like lower overhead context switching and easier sharing of data, but blocking of one thread can block the entire process.