Eager loading in Laravel uses the with() method to load related models together with the main model. When you call User::with('posts')->get(), Laravel builds one query to get all users and another query to get all posts for those users using a WHERE IN clause. Then it combines the posts with their respective users before returning the result. This avoids running a new query for posts each time you access them on a user, which would happen without eager loading. The process involves starting the main query, preparing the related query, executing both, and combining the data. This makes your app faster and more efficient by reducing the number of database queries.