In Kafka streams, messages flow through operations like filter and map. First, filter checks each message's value to keep only those containing 'error'. Messages not matching are discarded immediately. Then, map transforms each kept message by converting its value to uppercase. The output shows only transformed messages that passed the filter. This step-by-step trace shows how messages are processed, filtered, transformed, and output. Understanding this flow helps beginners see why some messages are dropped and how transformations apply only after filtering.