The importance of version control in collaborative development lies in its ability to track changes and manage project files efficiently. It allows multiple developers to work on the same codebase simultaneously without conflict, as each change is logged and can be revisited or reverted if necessary. Version control fosters better collaboration and communication among team members, ensures accountability, and simplifies the integration of new features. By providing a comprehensive history of code modifications, version control is crucial for maintaining software quality and facilitating teamwork.