The terraform import command is used to bring an existing cloud resource under Terraform management by linking it to the Terraform state file. It does not create or change the resource itself. The process starts by identifying the existing resource, then running the import command with the resource address and ID. Terraform updates its state file to track the resource. After import, running terraform plan helps verify if the configuration matches the imported resource. If there are differences, Terraform will propose changes. Import only affects the state file; configuration files must be written manually to reflect the resource. This allows Terraform to manage resources created outside Terraform.