The significance of website optimization in improving user engagement lies in its ability to enhance user experience by ensuring fast loading times, mobile-friendliness, and clear navigation. An optimized website attracts and retains users, reducing bounce rates and increasing the likelihood of conversions. Techniques such as SEO (Search Engine Optimization) and A/B testing play crucial roles in improving visibility and usability. As user expectations evolve, continuous optimization is essential for businesses to maintain competitive advantages in attracting and retaining visitors.