Temporary tables are a powerful tool in SQL for storing data temporarily. They are distinct from permanent tables in that they are not stored in the database's persistent data structures. This means they are not saved across sessions or database connections. This characteristic makes them ideal for holding intermediate results, data transformations, or data used for a specific query or procedure. Temporary tables are often used in conjunction with stored procedures or complex queries where you need to work with data that isn't meant to be part of the permanent database schema. They are also useful for testing or experimenting with data without affecting the main database tables. Temporary tables are a valuable tool for improving query performance and code organization.