Array multiplication in MATLAB refers to operations like the element-wise product of two arrays or the dot product, which can yield a new array. It is distinct from traditional matrix multiplication and has practical applications in various fields, including physics and engineering. Array division, specifically right or left division, allows for modifying array elements and is a method unique to MATLAB. The discussion emphasizes the importance of understanding arrays as data structures that can represent vectors and matrices, while also allowing for operations not typically possible with standard vectors and matrices. Overall, these operations enhance computational efficiency in manipulating data within MATLAB.