Generators in Python are a powerful feature that allows for the creation of iterators in a memory-efficient manner. Unlike traditional data structures that store all values in memory, generators produce items on-the-fly using the yield statement. This means they can handle large datasets or infinite sequences without consuming excessive memory. By maintaining their state between iterations, generators enable incremental computations and provide a convenient way to iterate over data. Understanding how to create and utilize generators can significantly enhance the efficiency and flexibility of your Python programming projects.