The Safe Edge Theorem states that if an edge in a weighted graph is safe, it can be included in the minimum spanning tree (MST) without violating the properties of the MST. A safe edge is one that, when added to a growing spanning tree, does not create a cycle and maintains the minimal total edge weight. This theorem is crucial for algorithms like Kruskal's and Prim's, which rely on identifying safe edges to efficiently construct a minimum spanning tree.