Dynamic allocation refers to the process of allocating resources, such as memory or funds, as needed during runtime rather than at the start of a program or project. This approach allows for flexibility, enabling systems to adapt to changing demands and optimize resource usage efficiently. In computer programming, dynamic allocation often involves using functions like malloc in C or new in C++ to request memory from the heap. This contrasts with static allocation, where resources are fixed at compile time, making dynamic allocation essential for applications that require variable resource management.