Python generators provide an efficient way to handle iteration, especially with large datasets, by producing values on demand through the yield statement, which helps conserve memory. Unlike standard functions that compute and store all values at once, generators maintain their state between calls, allowing for the suspension and resumption of execution. This mechanism enables them to act as efficient iterators over sequences, such as infinite sequences or large data transformations, without consuming excessive memory. Generators can contain multiple yield points, allowing for complex control flows and iteration patterns while retaining lazy evaluation benefits. They are particularly useful for processing large datasets, streaming data, creating composable pipelines, generating infinite sequences, and handling files line-by-line. Although they offer significant advantages for large-scale data processing tasks, for smaller datasets, standard lists might be more advantageous in terms of simplicity and readability. Python's itertools module further extends the capabilities of generators by providing utilities for chaining and composing them.