Routing in SAPUI5 facilitates navigation within single-page applications by defining routes and targets in the router configuration. When a URL matches a route, the corresponding view or control is displayed, allowing for seamless user interaction. Parameters can be passed through routes, enhancing flexibility. Navigation can be triggered programmatically, enabling dynamic content loading. This mechanism is essential for managing application flow and state, providing a structured approach to building interactive and user-friendly SAPUI5 applications.