Node.js is an asynchronous event-driven JavaScript runtime that allows JavaScript to be used on the server-side. It uses a non-blocking I/O model that makes it suitable for real-time web applications. WebSockets provide a standardized way for the browser and server to establish two-way communication. However, not all browsers support WebSockets yet. Socket.io addresses this by providing a WebSocket-like experience across all browsers through fallbacks like long-polling. It allows real-time applications to be developed more easily.