To install an SSL certificate in nginx, first obtain the certificate and key files. Then edit the nginx configuration file to add SSL directives including 'listen 443 ssl;' and specify the paths to the certificate and key files. After saving the config, reload nginx so it reads the new settings and enables SSL. Finally, test accessing the site via HTTPS to ensure the certificate works and the connection is secure. If errors occur, check nginx logs and verify file paths and permissions, then reload again. This process enables secure HTTPS connections on your nginx server.