RPC allows a program to call a subroutine that resides on a remote machine. When a call is made, the calling process is suspended and execution takes place on the remote machine. The results are then returned. This makes the remote call appear local to the programmer. RPC uses message passing to transmit information between machines and allows communication between processes on different machines or the same machine. It provides a simple interface like local procedure calls but involves more overhead due to network communication.