Database normalization aims to organize data efficiently by reducing redundancy and dependency. This minimizes inconsistencies and anomalies within the database. By organizing data into multiple related tables and eliminating redundant data, normalization reduces storage space requirements and improves data consistency. Normalization helps in reducing update anomalies by breaking down data into smaller, related tables. This ensures that updates, insertions, and deletions can be performed without affecting other unrelated data, thus maintaining data integrity.