Anonymous functions in MATLAB are small functions defined in one line using the syntax @(input) expression. They do not have a name but are stored in variables like f. When you call f with a value, that value is assigned to the input variable locally inside the function. The function then computes the expression and returns the result. For example, defining f = @(x) x^2 + 3 creates a function that squares x and adds 3. Calling f(4) computes 4 squared plus 3, resulting in 19. The input variable x exists only during the function call and is not accessible outside. This makes anonymous functions handy for quick calculations without creating full function files.