Nested serializers in Django REST Framework allow you to include one serializer inside another to represent related data together. First, you define a child serializer for the related data, like comments. Then, you define a parent serializer, like a post, that includes the child serializer as a field with many=True if it's a list. When serializing, each child object is processed by its serializer, and the parent serializer combines its own fields with the nested serialized data. This produces a nested JSON output showing the parent and its related children. The execution steps show creating serializer instances for each comment, then the post, and finally outputting the combined data. Key points include the need for separate serializers for validation, the use of many=True for lists, and how the parent serializer delegates serialization of nested data. This approach helps organize and validate complex data structures clearly and safely.