The Node.js REPL is an interactive tool where you type JavaScript code and get immediate feedback. When you start it, it waits for your input. You can declare variables, run expressions, or call functions. For example, declaring a variable shows 'undefined' because declarations don't return a value. Expressions like 'x + 3' show the computed result. Functions like console.log print messages and return undefined, so you see both the message and 'undefined'. The REPL keeps track of variables across inputs, so you can use them later. To exit, type '.exit'. This makes it easy to explore and test code step-by-step.