Parametric polymorphism is a programming and type theory concept that allows functions and data types to be written generically, so they can operate on any type of data without being tied to a specific one. This feature enables more reusable and flexible code, allowing developers to define operations on types without needing to know their specifics ahead of time. In the context of polymorphic lambda calculus, this concept is central, as it introduces a way to express generic functions that can work uniformly across different types.