In coding, interrupts are events that temporarily pause the normal execution of a program to handle specific tasks. These events can be triggered by hardware, like a timer or keyboard input, or by software, such as system calls. When an interrupt occurs, the program jumps to a designated interrupt service routine (ISR) to address the event. Once the ISR is completed, the program resumes its regular execution. Interrupts are crucial for handling various tasks efficiently, enhancing system responsiveness, and allowing the CPU to respond promptly to external events.