WordPress Multisite allows a single WordPress installation to host multiple sites. It provides benefits like shared plugins, themes, and updates across sites while reducing costs. Multisite can use subdomains or subdirectories and is installed via a single line of code in wp-config.php. The network administrator can then create sites, install themes and plugins network-wide or individually, and manage users, settings and updates for all sites from the network admin screens. Considerations for using Multisite include available hosting resources and whether sites need separate databases.