* Engaged: The light may illuminate briefly when you start the car, indicating the system is active. It might also illuminate when the system is actively intervening (e.g., on a slippery surface).
* Malfunctioning: If the light stays on constantly while driving, it suggests a problem with the traction control system. This requires attention. A malfunctioning traction control system doesn't mean your car is undriveable, but it's significantly less safe. It's important to have it checked by a mechanic.
In short, see a mechanic if the light remains illuminated after starting the car or if it comes on and stays on during driving.