it is a collection which is used to notify mostly UI to change in the collection , it supports automatic notification.
Mainly used in WPF ,
Where say suppose you have UI with a list box and add button and when you click on he button an object of type suppose person will be added to the obseravablecollection and you bind this collection to the ItemSource of Listbox , so as soon as you added a new item in the collection , Listbox will update itself and add one more item in it.