Neo4j is a graph database that stores data in nodes and relationships. It allows for efficient querying of connected data through graph traversals. Key aspects include nodes that can contain properties, relationships that connect nodes and also contain properties, and the ability to navigate the graph through traversals. Neo4j provides APIs for common graph operations like creating and removing nodes/relationships, running traversals, and managing transactions. It is well suited for domains that involve connected, semi-structured data like social networks.