How does 'Template Literal Types' work and what are their benefits?

Template literal types allow for string manipulation at the type level using the same syntax as JavaScript template strings.

Introduced in TS 4.1, they allow you to define types that are combinations of other string literals. They are incredibly powerful for creating strictly typed CSS classes, API endpoints, or property accessors. When combined with utility types like Capitalize or Uppercase, they provide a high degree of string safety.