PowerShell is an automation engine and scripting language that provides a shell environment and replaces CMD in Windows. It allows for variables, arrays, hashes, functions, classes, and cmdlets to be used for automation tasks and connecting commands through piping. PowerShell provides access to WMI, COM objects, .NET assemblies, and acts as a shell with aliases and drives that can be used to manage systems, filter and group command output, and write deployment scripts.