An Integrated Development Environment (IDE) serves multiple purposes in software development by providing a comprehensive suite of tools for coding, debugging, and testing applications. IDEs typically include a code editor, compiler, debugger, and other features like syntax highlighting and version control integration. This centralized environment streamlines the development process, enabling developers to write, test, and debug code efficiently. IDEs also often support multiple programming languages and frameworks, enhancing versatility. By offering features that improve productivity and reduce errors, IDEs play a crucial role in modern software development, making it easier to build and maintain complex applications.