The LATERAL join in PostgreSQL runs a subquery for each row of the main table. This subquery can use values from the current row, making it a correlated subquery. For example, for each customer, the subquery finds one order belonging to that customer. The execution table shows each customer row, the subquery run with that customer's id, the order found (or NULL if none), and the combined output row. If the subquery returns no rows, the main row still appears with NULLs for the subquery columns. This is because LATERAL allows the subquery to access the current row's columns. Without LATERAL, the subquery could not refer to the main table's current row, so it would not filter orders per customer. This technique is useful to join each row with related data computed on the fly.