Ragel is a parser generator that compiles to various host languages including Ruby. It is useful for parsing protocols and data formats and provides faster parsing than regular expressions or full LALR parsers. Several Ruby projects like Mongrel and Hpricot use Ragel for tasks like HTTP request parsing and HTML parsing. When using Ragel with Ruby, it can be compiled to Ruby code directly, which is slow, or a C extension can be written for better performance. The C extension extracts the parsed data from Ragel and makes it available to Ruby.