Top-level await, introduced in ES2022, allows developers to use the await keyword at the top level of ES modules, simplifying asynchronous code by eliminating the need for wrapping it in async functions. This feature enhances code readability and streamlines the execution of asynchronous logic, although it introduces potential issues like circular dependencies and blocking module imports. Best practices suggest using top-level await judiciously, particularly in non-shared modules, to avoid performance pitfalls.