Machine learning plays a crucial role in self-driving cars by enabling these vehicles to interpret data from a variety of sensors like cameras, radar, and lidar. It processes vast amounts of data to recognize and predict traffic patterns, detect obstacles, and make real-time decisions. Algorithms trained on historical driving data enhance the vehicle's ability to navigate complex environments autonomously. Through continuous learning, machine learning improves the car's performance over time, ensuring safety and efficiency while adapting to diverse road conditions and driving behaviors.