SCSS is a file extension and syntax for CSS that adds powerful features like nesting, variables, mixins and more. SCSS files are compiled into regular CSS files. Using SCSS allows for better organization of CSS through modularity and variables, which cuts down development time. It also automatically concatenates and minifies CSS. To use SCSS, install the sass gem and save CSS files with a .scss extension. Then use the sass watch command to automatically compile SCSS files into CSS.