Unit testing is used to test individual units or components of code. The document discusses installing PHPUnit and configuring it using XML. It recommends a project directory structure with separate src and tests folders. Writing unit tests involves extending the TestCase class and prefixing test methods with "test". Common assertions include assertTrue, assertFalse, assertEquals. Annotations like @depends and @dataProvider can parameterize tests. Best practices include independent, focused tests that are maintained alongside code changes.