Template strings are a powerful way to write strings in JavaScript, especially when working with React. They are denoted by the backtick character (`) and allow for a wide range of formatting options, including line breaks, which are not possible with regular strings. Template strings are often used to improve readability in large code snippets, as they allow for easy interpolation of values into the string. In React, template strings are used for creating dynamic components, writing inline CSS styles, and writing HTML elements directly in the code. They are a great way to make code more readable and easier to understand, as well as reducing the amount of code needed to write a given snippet.