Regenerator is a core tool in the Babel toolchain, responsible for transforming async/await and generator functions in JavaScript into ES5-compatible code. It analyzes and rewrites these higher-order constructs into state machine-based equivalents, ensuring broad browser support. Essential for modern JavaScript development utilizing asynchronous patterns, Regenerator allows developers to leverage async/await syntax without sacrificing compatibility across older environments. It's typically invoked during the transpilation process, behind the scenes when using Babel.