The 'events' package is a core Node.js module providing an EventEmitter class. It facilitates pub/sub (publish/subscribe) patterns within applications, enabling event-driven architectures. Key features include registering event listeners, emitting custom events, and managing listener subscriptions. Widely used throughout the Node.js ecosystem, it underpins asynchronous communication for modules and applications relying on callbacks and event notifications. Utilizing events simplifies managing complex interactions and dependencies within a project.