The React Native FlatList component is a versatile tool for efficiently displaying large sets of scrollable list items in mobile applications. It enhances performance by only rendering currently visible items and updating them as needed, making it suitable for data that changes over time. Key components include the data prop, which provides the source array for the list, and the renderItem function, which renders each item. The guide illustrates how to implement FlatList with examples such as fetching data from an API, handling pull-to-refresh functionality through the refreshing and onRefresh props, and incorporating pagination using the onEndReached prop to improve user experience by loading data incrementally. Additionally, the use of keyExtractor ensures list efficiency and performance by maintaining unique item keys. The implementation of these features, such as infinite scroll and real-time data updates, helps create a professional and user-friendly app interface.