The significance of version control in software development lies in its ability to track changes to code over time, facilitating collaboration among developers. Version control systems like Git allow multiple contributors to work on a project simultaneously without overwriting each other's changes. They enable rollback to previous code versions, ensuring stability during development. Additionally, version control provides a historical record of modifications, aiding in understanding the evolution of a project and resolving conflicts that may arise. Ultimately, it enhances code management and project organization.