Namespaces in Kubernetes create separate groups for resources like pods. When you create namespaces such as 'team-a' and 'team-b', and deploy pods inside them, each pod can only see resources in its own namespace. Commands like 'kubectl get pods -n team-a' list pods only in that namespace. This separation means pods in 'team-a' cannot see or interact with pods in 'team-b', providing isolation. This isolation applies to many resource types, ensuring teams can share a cluster without interfering with each other. The execution steps show creating namespaces, deploying pods, and listing pods per namespace to demonstrate this isolation clearly.