A complex number is a number that can be expressed in the form of 'a + bi', where 'a' is the real part, 'b' is the imaginary part, and 'i' is the imaginary unit defined by the property that $i^2 = -1$. Complex numbers allow for the solution of equations that have no real solutions and are essential in various fields such as engineering, physics, and applied mathematics. They can be represented graphically on the complex plane, where the x-axis represents the real part and the y-axis represents the imaginary part.