In Kotlin, the finally block runs after the try and catch blocks no matter what. If the try block runs without errors, the catch block is skipped, but finally still runs. If an exception happens, the catch block runs first, then finally. This ensures cleanup code always executes. The example code prints messages from try, catch (if needed), and finally blocks. The execution table shows step-by-step which block runs and when. Variables track if an exception occurred. Key moments clarify that finally runs always, even without exceptions, and can affect return values or throw new exceptions. The quiz tests understanding of when finally runs and the order of blocks during exceptions.