A compass points to magnetic north, which is determined by the Earth's magnetic field. The needle of a compass is magnetized and will align itself with the magnetic field lines of the Earth, enabling the user to find directions. It's a fundamental tool for navigation, used by sailors, hikers, and explorers throughout history. While magnetic north isn't the same as true north (the geographic North Pole), adjustments can be made for accurate navigation. Understanding how a compass functions is essential for orienting oneself in unfamiliar territories.