Browserslist is a powerful tool that shares target browsers between different front-end tools. Configuration is shared through a Browserslist config file or environment variables, ensuring consistency. It helps manage browser compatibility for projects, optimizing output for relevant browser versions, reducing unnecessary polyfills and bloated code. Developers use it for tools like Autoprefixer, Babel, and ESLint, streamlining workflow and enhancing front-end optimization by specifying browser support.