Model inheritance in FastAPI means making a new model that reuses fields from an existing model. We start by defining a base model with common fields like username. Then we create a child model that inherits from the base and adds more fields like password. When we create an instance of the child model, it has both the inherited and new fields. This helps keep code simple and organized. For example, UserCreate inherits username from UserBase and adds password. Accessing these fields works as expected. If you forget to provide required fields, FastAPI will raise an error. This pattern is useful for sharing common data structures in your API.