Neutral is a conductor in an electrical system that carries unbalanced current back to the power source. It is typically at or near zero volts relative to the ground and is essential for completing the circuit in single-phase and three-phase systems. The neutral wire helps stabilize voltage and ensures proper operation of electrical devices. In grounded systems, the neutral is often connected to the earth (ground) at the main panel, providing a reference point to prevent voltage fluctuations and enhance safety.