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The MuiCallout component in MUI 5 is a material design-inspired component that allows designers to add callouts or tooltips to UI elements. It is a small, customizable box that appears next to UI elements to provide additional information or guidance to the user. The MuiCallout component can be styled with various props, including background color, border radius, and box shadow to match the design of the application. With MUI 5, the MuiCallout component has been introduced as a new feature, replacing MUI 4's Popper component.