Unit testing is a type of software testing where individual units or components of a software are tested to determine if they are fit for use. It is done during development by developers to test standalone modules. There are three phases of unit testing: arrange, act, and assert (AAA). Unit testing has advantages like easier debugging and quick fixes but also disadvantages like more test code needing to be written. Unit test implementation involves writing test cases, setting up fixtures, executing tests, and ensuring code quality.