How can mod_rewrite be used in PHP to manipulate URLs and pass parameters?

Mod_rewrite can be used in PHP to manipulate URLs and pass parameters by rewriting the URL in a more user-friendly format. This can help improve SEO, make URLs easier to remember, and provide a cleaner look to the website. By using mod_rewrite rules in the .htaccess file, we can redirect incoming requests to a PHP script that can then parse the URL and extract parameters from it.

```php
RewriteEngine On
RewriteRule ^products/([0-9]+)/?$ product.php?id=$1 [L]
```

In this example, the mod_rewrite rule will rewrite a URL like "example.com/products/123" to "example.com/product.php?id=123". This allows us to pass the parameter "123" to the PHP script using a more user-friendly URL.