Core API
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2.1.10. The Extension Manager (EM)
Extensions are managed from the Extension Manager inside TYPO3 by "admin" users. The module is located at "Tools > Ext Manager" and offers a menu with options to see loaded extensions (those that are installed or activated), available extensions on the server and the possibility to import extensions from online resources, typically TER (TYPO3 Extension Repository) which is at TYPO3.org.
The interface looks like this for the list of available extensions:
The interface is really easy to use. You just click the +/- icon to the left of an extension in order to install it.