Vue 3.2 has introduced a new feature called `<script setup>` which aims to simplify the Composition API usage inside Single File Components (SFCs). With `<script setup>`, developers can define variables and use them in the template without needing named or default exports, reducing code bulk in larger codebases. This feature also allows importing components without extra config or bindings, making it easier to pass props and emit events between components. Additionally, `<script setup>` ships with APIs like `defineProps` and `defineEmits`, which enable declaring props and emits, making it easier to handle reactive data and communication between components.