The Cisco IOS File System (IFS) enables administrators to navigate directories, list files, and create subdirectories in supported devices. Key file systems include flash, which stores the bootable Cisco IOS image running in RAM, and nvram, which contains critical configuration files like the startup configuration. Commands such as show file systems, dir, and cd help view and manage these systems, providing details on memory, permissions (read, write, or both), and file availability.