A bundler for javascript and friends. Packs many modules into a few bundled assets. Code Splitting allows to load parts for the application on demand. Through "loaders" modules can be CommonJs, AMD, ES6 modules, CSS, Images, JSON, Coffeescript, LESS, ... and your custom stuff.
When using watch mode, webpack installs file watchers to all files, which were used in the compilation process. If any change is detected, it’ll run the compilation again. When caching is enabled, webpack keeps each module in memory and will reuse it if it isn’t changed.