LATERAL subqueries in PostgreSQL let you run a subquery for each row of a main table. This subquery can use columns from the current main row. For example, if you have a customers table and want to find one order per customer, you can write a lateral subquery that selects orders where the customer_id matches the current customer's id. The execution flow starts by taking a row from the main table, then running the lateral subquery using that row's data, then combining the results. This repeats for all rows. If the subquery finds no matching rows, it returns NULL for that row's subquery columns. This behavior is shown in the execution table where for 'Charlie' no order is found, so NULL appears. Without LATERAL, the subquery cannot access main row columns and runs independently. This makes LATERAL very useful for queries needing row-dependent subqueries.