Variables are containers that store information in PHP. PHP variables are case sensitive and can contain strings, integers, floats, Booleans, arrays and objects. Variables start with a $ sign followed by a name. Variable names must begin with a letter or underscore and can contain alphanumeric characters and underscores. Variables can be assigned values using common operators like assignment, addition, subtraction etc. Variables can have different scopes like local, global and static. Constants are similar to variables but their values cannot be changed once defined.