The term "code refactoring" in software engineering refers to the process of restructuring existing computer code without changing its external behavior. This practice aims to improve the code's structure, readability, and maintainability, making it easier to understand and modify in the future. Refactoring can involve simplifying complex code, removing redundancies, or adhering to improved design patterns. By enhancing code quality, refactoring ultimately leads to more efficient software development and reduces the likelihood of future bugs, thereby ensuring that teams can deliver better applications over time.