In C#, when you pass a reference type like an object to a method, the method receives a copy of the reference pointing to the same object in memory. This means if the method changes properties of the object, those changes are visible outside the method. For example, if you have a Person object with a Name property set to 'Bob' and pass it to a method that changes Name to 'Alice', after the method call, the original Person's Name will be 'Alice'. However, if inside the method you assign the parameter to a new object, this does not affect the original object outside. This behavior is because the reference itself is passed by value, but it points to the same object. Understanding this helps you predict how objects behave when passed to methods.