Test-driven development (TDD) is an important approach for React application development. TDD involves writing tests before writing code to ensure features are well-specified and code works as intended. Some key benefits of TDD for React include high test coverage, exceptional code quality, reduced costs from fewer bugs, and convenient debugging. Popular tools for TDD with React are Jest for tests, Enzyme for mounting components, and Cypress for end-to-end testing. Developers should follow best practices like single responsibility components and maximizing code reuse. Overall, TDD helps produce robust, maintainable React applications.