Auer rods are distinctive, rod-like inclusions found in the cytoplasm of myeloid cells, particularly in certain subtypes of leukemia. These cytoplasmic inclusions are composed of fused lysosomes and contain myeloperoxidase and various other lysosomal enzymes. Auer rods are considered a hallmark of acute myeloid leukemia (AML) and are often utilized as a diagnostic feature in histological examinations.