The significance of ethical hacking lies in its role in identifying and addressing security vulnerabilities within systems before malicious hackers exploit them. Ethical hackers, or white-hat hackers, use their skills to assess the security posture of organizations by conducting penetration tests and vulnerability assessments. This proactive approach enhances overall cybersecurity, protects sensitive data, and fosters trust among clients and stakeholders. By ensuring that security measures are robust, ethical hacking helps prevent breaches and mitigates potential legal and financial repercussions.