Imaginary numbers, represented by "i" where i = sqrt(-1), extend the number system to solve equations that have no real solutions, such as x^2 = -1. They are crucial in various fields, particularly engineering, where complex numbers help model physical phenomena like electrical currents and oscillations. Complex numbers are expressed in the form x + iy, combining real and imaginary components, and can be manipulated using specific algebraic rules. The concept of complex numbers allows for a two-dimensional representation, where the real part is plotted on one axis and the imaginary part on another. Understanding imaginary numbers is essential for grasping advanced mathematical concepts and their applications in real-world scenarios.