Python algorithms are a set of step-by-step procedures or formulas for solving problems and performing tasks using the Python programming language. They are essential for efficient data processing, manipulation, and analysis. Algorithms can be categorized into various types, including sorting algorithms, which arrange data in a specific order, and searching algorithms, which help locate specific elements within data structures. Understanding these algorithms is crucial for optimizing performance and enhancing the functionality of applications. By mastering Python algorithms, developers can create more efficient and effective code, ultimately improving the user experience and application performance.