Glucagon plays an essential role in regulating blood sugar levels by stimulating the liver to convert stored glycogen into glucose. When blood sugar levels drop, glucagon is released to restore them to normal ranges. This hormone is crucial for maintaining energy balance, particularly during fasting or between meals. By promoting gluconeogenesis and the release of glucose into the bloodstream, glucagon ensures that the body has a constant supply of energy, especially for vital processes. Together with insulin, it maintains overall metabolic homeostasis.