The file package for Node.js provides a simple and intuitive API for asynchronous file system operations. It simplifies common tasks like reading, writing, creating, and deleting files and directories. It offers promises for cleaner async/await usage, handles encoding gracefully, and provides helpful error messages. Easy folder creation and JSON file handling makes file a lightweight alternative to Node's built-in fs module when you want a more user-friendly experience with clear, concise syntax.