Scaffolding is a code generation framework in ASP.NET that creates base templates for code or markup through automation. This allows developers to quickly generate basic project items like controllers and views in ASP.NET MVC to speed up development time. Scaffolding provides advantages like minimal code required for data-driven applications, built-in validation and filtering, and fully functional CRUD pages out of the box. The document then walks through steps to scaffold a sample MVC application using the MVC Scaffolder NuGet package.