Node.js provides a built-in File System (fs) module that allows developers to interact with files and directories. The fs object can be accessed by requiring it at the top of a JavaScript file, allowing for various methods such as reading files using `readFileSync()` or `readFile()`, writing files using `writeFileSync()` or `writeFile()`, creating directories with `mkdirSync()` or `mkdir()`, and handling errors with try-catch blocks.