Batch processing in Mule allows splitting messages into individual records, performing actions on each record, and reporting results. It is useful for integrating or synchronizing data between systems, extracting/transforming/loading data into a target system, and handling large volumes of incoming API data. Mule's batch jobs introduced in 2013 simplify processing large amounts of data with parallel processing, record-based reporting and error handling. Improvements were added in 2015 for error handling in batches of millions of records and near real-time synchronization using polling, watermarking, and batch modules.