Database sessions offer a reliable, scalable approach to managing user interactions on Laravel applications by storing data in a database rather than memory. Key benefits include scalability, persistence, and easy backup/restore. To implement database sessions: configure the session driver and database connection, create a migration for the session table, and run the migration to create the sessions table. Storing and retrieving session data is done using methods like `Session::get('key')` and `Session::put('key', 'value')`.