<ul data-eligibleForWebStory="true">React's Context API helps in sharing data across components without prop drilling.Context is useful for managing authentication, themes, and language settings.It's recommended for state accessed by many components and to avoid deep prop passing.Context is not suitable for high-frequency updates or complex state management.Creating a context involves using createContext, Provider, Consumer (older way), and useContext hook.Provider wraps the component tree to pass down values, while useContext simplifies access to context values.A real-world example shows creating an AuthProvider, custom hooks like useAuth, and wrapping the app.Best practices include splitting contexts logically, using custom hooks, and keeping context values minimal.Avoid using context for frequently updating values.The Context API is a clean way to manage state for things like auth and themes in React.