Pagination allows you to retrieve a subset of data from a large collection or query result in a Web API. In ASP.NET Core, you can implement pagination by accepting page number and page size parameters in the API endpoint. Using LINQ, you can apply the Skip and Take methods to skip the appropriate number of records and retrieve the desired number of records per page. By returning the paginated data along with metadata like total record count and page information, clients can navigate through the data efficiently. Pagination enhances the performance and usability of APIs dealing with large datasets.