Free energy is a thermodynamic concept that represents the energy available for work in a system at constant temperature and volume. It is defined as F = U - TS, where U is internal energy, T is temperature, and S is entropy. In thermodynamic equilibrium, free energy is minimized, indicating the most stable state of the system. This minimization principle is crucial for understanding energy exchanges and work potential during quasistatic processes. Ultimately, free energy plays a key role in predicting system behavior and stability in thermodynamics.