In product development, the acronym MVP stands for Minimum Viable Product. It refers to a version of a product that has the core features necessary to be functional and meet customer needs, allowing teams to gather user feedback and iterate quickly. This approach helps in identifying product-market fit while minimizing resource expenditure, enabling businesses to validate ideas before fully investing in development. An MVP serves as a crucial stepping stone in the agile development process, aiding in informed decision-making for future enhancements and features based on real user interactions and preferences.