A 'tar.gz' file is a compressed archive format commonly used in Unix-like operating systems. It combines two separate processes: archiving and compression. First, the 'tar' (Tape Archive) utility bundles multiple files and directories into a single archive file, preserving directory structures, file permissions, and timestamps. This archive file, typically named with the '.tar' extension, is then compressed using the 'gzip' compression algorithm. Gzip is a widely used lossless data compression program. The resulting file, with the '.tar.gz' (or '.tgz') extension, is significantly smaller than the original uncompressed archive. This makes it ideal for distributing software packages, backing up data, and transferring large collections of files over the internet. The two-step process allows for efficient storage and transmission while maintaining the integrity of the archived data. To access the individual files within a 'tar.gz' archive, it must first be decompressed using a gzip utility and then extracted using a tar utility. Many modern archive managers handle both steps automatically.