Process creation refers to the method by which a new process is generated in an operating system. This typically occurs when a program is executed, leading to the allocation of resources such as memory and CPU time. The operating system uses a system call, often called fork in Unix-like systems, to create a duplicate of the current process, which can then be modified to run a different program. Once a new process is created, it is assigned a unique identifier known as a Process ID (PID). The operating system manages these processes, ensuring they have the necessary resources and scheduling them for execution. This management is crucial for multitasking, allowing multiple processes to run concurrently without interference.