Water is known as a universal solvent because it has the ability to dissolve a wide variety of substances. This is due to its unique molecular structure, which allows it to form hydrogen bonds with other molecules. These hydrogen bonds break apart the solute particles and surround them, allowing them to be dispersed throughout the water. This property makes water an excellent solvent for many substances, including salts, sugars, and polar molecules. Other solvents may have specific solutes they can dissolve, but water has the ability to dissolve a larger range of substances, making it the universal solvent.