The document discusses the Rails 3 Asset Pipeline, which provides a framework for compiling and managing static assets like CSS, JavaScript and images. Key points: - It concatenates, minifies and caches assets for improved performance. Sass and CoffeeScript are supported out of the box. - Assets are stored in app/assets, vendor/assets and compiled to public/assets. Sprockets handles asset organization and dependencies. - Asset tags and helpers reference assets through digest URLs rather than direct paths for caching. Precompilation packs assets for production. - Compass and custom asset organization/dependencies can be used. A CDN can host assets for improved load times.