Terraform outputs are blocks that let you show key information after your infrastructure is created. You define an output with a name, a value (usually from a resource), and an optional description to explain what it means. When you run 'terraform apply', Terraform creates the resources and captures the output values. Later, running 'terraform output' displays these values along with their descriptions. This helps users understand what was created and how to use the outputs. Outputs are only available after resources exist, so before apply they are undefined. Adding descriptions is a best practice to document your infrastructure clearly.