Two-way binding with ngModel in Angular connects an input field and a component variable so they update each other automatically. When the user types in the input, ngModel updates the variable. When the variable changes, the input field updates to match. This creates a loop that keeps UI and data in sync. The example code shows an input bound to a variable 'name'. As the user types letters, the variable updates step-by-step, and the displayed greeting updates accordingly. The execution table traces each step of user input, variable changes, and rendered output. Key moments clarify why input and variable can be briefly out of sync and how changes flow both ways. The visual quiz tests understanding of variable values and input display at different steps. This binding requires importing Angular's FormsModule and is essential for building interactive forms and UI elements.