A virtual machine is a software program or emulation of a computer system that runs on a physical machine and behaves like a separate physical computer. It allows multiple operating systems to run on a single physical machine, enabling users to run different applications and software on the same hardware. Virtual machines are commonly used for testing software, running multiple operating systems on a single computer, and for server consolidation in data centers. They provide isolation between the virtual machine and the physical hardware, allowing for greater flexibility and efficiency in managing computing resources.