In PHP, you first declare a function by writing function name() and putting code inside curly braces. This tells the program what the function does but does not run it yet. When you want to run the function, you call it by writing its name followed by parentheses, like greet(). The program then runs the code inside the function. In the example, greet prints Hello! when called. The execution table shows the function is declared first, then called, which prints Hello!, then the function ends and the program finishes. Variables track the function state from declared to running to finished. Beginners often wonder why the function does not run when declared; it only runs when called. Also, calling the function multiple times runs the code each time. If you remove the call, nothing prints because the function code never runs.