Dynamic Resource Allocation is a method used in computing and networking to efficiently distribute resources, such as processing power, memory, or bandwidth, based on current demand. This approach allows systems to adapt to changing workloads, ensuring optimal performance and minimizing waste. By monitoring usage patterns, cloud services and data centers can automatically adjust resources in real-time. This flexibility helps organizations manage costs and improve service delivery, as resources are allocated only when needed, rather than being fixed or underutilized.