To find the derivative of the modulus of a function, the formula |f(x)| = f(x) * sign(f(x)) can be applied. This allows the use of the product rule for differentiation, with the caveat that the derivative does not exist at points where f(x) = 0 unless f' also equals 0. The discussion also raises the question of whether the function in question is of a real or complex variable. Understanding these nuances is crucial for correctly applying differentiation techniques. Overall, the derivative of the modulus requires careful consideration of the function's behavior at critical points.