Lambda functions in Python are a powerful feature that allows for the creation of small, anonymous functions. Defined using the lambda keyword, these functions can take any number of arguments but are limited to a single expression, which is evaluated and returned. This makes lambda functions particularly useful for short, throwaway tasks where defining a full function would be unnecessarily verbose. They are often employed in functional programming contexts, such as with Python’s built-in functions like map(), filter(), and sorted(), enhancing code efficiency and readability. Understanding lambda functions can significantly improve your Python programming skills.