Syntax highlighting is a feature in an Integrated Development Environment (IDE) that visually distinguishes various components of the code by color-coding them. Different colors are used for variables, keywords, functions, data types, and other elements, making the code easier to read and understand. This feature helps developers quickly identify different parts of their code and spot potential errors such as missing or misplaced syntax. Syntax highlighting improves code readability, especially in large projects, by allowing developers to recognize the structure and flow of the program at a glance. It can also reduce coding errors, as it makes it easier to spot typos or incorrect usage of variables or functions.