The term ‘user story’ in software development refers to a brief, informal description of a software feature from the end-user's perspective. It outlines what the user wants to achieve and why, typically following the template: "As a [type of user], I want [goal] so that [reason]." User stories facilitate communication between stakeholders, promote focus on user needs, and help prioritize features during agile development. They serve as a foundation for defining acceptance criteria and understanding the functionality that the software needs to deliver.