Browser testing with Laravel Dusk involves opening a browser window, navigating to a web page, performing user actions like typing and clicking, then checking if the expected page or element appears. The test starts by launching the browser, visiting the login page, typing the email and password, pressing the login button, and asserting the URL changes to '/home'. If the assertion passes, the browser closes and the test ends successfully. If any step fails, the test stops and reports failure. Variables like input fields and current URL change as the test runs. This process helps ensure the website works correctly from a user's perspective.