What is .TUF file?

What is .TUF file? What is the significance of the same? Any implications if the file is deleted?

.TUF file is the Transaction Undo File, which is created when performing log shipping to a server in Standby mode.
When the database is in Standby mode the database recovery is done when the log is restored; and this mode also creates a file on destination server with .TUF extension which is the transaction undo file.

This file contains information on all the modifications performed at the time backup is taken.

The file plays a important role in Standby mode… the reason being very obvious while restoring the log backup all uncommited transactions are recorded to the undo file with only commited transactions written to disk which enables the users to read the database. So when we restore next transaction log backup; SQL server will fetch all the uncommited transactions from undo file and check with the new transaction log backup whether commited or not.

If found to be commited the transactions will be written to disk else it will be stored in undo file until it gets commited or rolledback.