Inner join is a way to combine two tables by matching rows that share the same key value. We start with two tables, look for keys that appear in both, and then combine those rows into one result table. Rows that don't have a matching key in the other table are left out. For example, if we have a table of people with ids and names, and another table with ids and ages, an inner join on the id will give us only the people who have both a name and an age recorded. The code example uses pandas merge with how='inner' to do this. Step by step, we check each id in the first table against the second, add matching rows to the result, and skip those without matches. This helps us focus on data that is common to both tables.