In GraphQL, context setup means creating an object that holds shared data for each request, like the logged-in user. When a request comes in, the server runs a context function that extracts needed info from the request and returns it as the context object. This context is then passed to every resolver function. Resolvers use this context to access data like user ID or permissions. The execution flow starts with receiving the request, initializing context, passing it to resolvers, and finally returning the response. If context is missing or empty, resolvers cannot access necessary data, which can cause errors. This visual trace shows step-by-step how context is created and used during a GraphQL request.