This lesson shows how to add text annotations to a matplotlib plot. First, we import matplotlib.pyplot as plt. Then we create data lists x and y. Next, we plot these points using plt.plot with circle markers. After plotting, we add a text annotation using plt.annotate with the label 'Point 2' at coordinates (2, 5). Finally, plt.show() displays the plot with points and the annotation. The annotation text appears near the specified point but slightly offset to avoid overlap. The execution table traces each step, and the variable tracker shows how variables change. Key moments clarify common confusions about annotation placement and order of plotting. The visual quiz tests understanding of annotation text, plotting steps, and position changes. The snapshot summarizes how to use text annotations effectively in matplotlib.