Ferret is a Ruby search engine library inspired by Lucene that allows for full-text search of documents. It provides features like indexing, storing document fields, and querying using its own FQL query language. Ferret can be used standalone in Ruby applications or integrated into Rails applications using the ActsAsFerret plugin to provide search capabilities for ActiveRecord models. The presentation provides an overview of Ferret's main concepts and demonstrates how to install, index documents, perform queries, and use Ferret both on its own and within Rails applications.