Nested aggregations in Elasticsearch start by grouping documents using an outer aggregation, such as 'terms' on a field like category. Then, inside each group, inner aggregations compute metrics like average price. The process collects all buckets with their computed metrics and returns a nested JSON response. This allows detailed analysis by grouping data first and then calculating statistics inside each group. The execution table shows steps from grouping to metric calculation to result collection and return. Variables like buckets change from empty to filled with grouped data and metrics. Key moments clarify why nested aggregations are needed and what happens if inner aggregations are missing. The visual quiz tests understanding of aggregation types, steps, and effects of removing inner aggregations.