Dynamic compilation is a process where code is compiled into machine language at runtime, rather than before execution. This allows programs to adapt to different environments and optimize performance based on current conditions. It is commonly used in programming languages like Java and C#, where the code is compiled into an intermediate form and then translated into machine code as needed. This technique can improve execution speed and resource management, as it enables the program to make decisions based on real-time data. Dynamic compilation is often employed in just-in-time (JIT) compilation, which enhances the efficiency of applications by compiling frequently used code paths on-the-fly.