Machine learning plays a crucial role in self-driving cars by enabling them to interpret data from a variety of sensors such as cameras, lidar, and radar. These technologies work together to create a real-time understanding of the vehicle's surroundings, allowing the system to make informed decisions during navigation. Through continuous learning from vast amounts of driving data, self-driving cars improve their performance and safety over time. As machine learning algorithms evolve, they enhance features like object recognition, path planning, and collision avoidance, making fully autonomous driving progressively achievable.