XDebug is a PHP extension that provides debugging and profiling capabilities. It allows you to set breakpoints and pause script execution, avoiding the need to add print/echo statements for debugging. XDebug works with IDEs like PHPStorm, Sublime Text, and Vim. The document provides instructions for installing XDebug on Ubuntu, Mac, and Windows systems, and configuring it to work with PHPStorm or Sublime Text. It also describes various debugging tools available in the IDEs like breakpoints, stepping, and viewing variables.