The significance of API documentation for developers lies in its ability to facilitate clear understanding and effective use of application programming interfaces. Comprehensive documentation provides guidelines, examples, and usage instructions, aiding developers in implementing APIs effectively without confusion. This clarity reduces the learning curve and accelerates development processes, allowing teams to build and integrate applications more swiftly. Additionally, good API documentation enhances collaboration among developers, enabling them to troubleshoot issues and leverage features efficiently. Well-documented APIs contribute to better software quality and enhance the user experience by ensuring seamless interactions with different systems.