Function overloading allows functions to have the same name but different parameters. It is useful for functions that perform similar tasks like abs(), labs(), and fabs() for returning absolute values of different data types. To overload a function, its parameters must differ in type, number, or both. Ambiguous function calls cannot be resolved and will cause errors. Common uses of overloading include constructors, copy constructors, operators like + and –, and special functions like [] and ().