In React, props are like packages of information sent from a parent component to a child component. The parent includes props as attributes when calling the child, for example <Greeting name="Alice" />. The child component receives these props as a parameter, usually named props, and uses them to decide what to show. In the example, the Greeting component uses props.name to display Hello, Alice!. Props are read-only, meaning the child cannot change them. React renders the child component using the props data, producing the final output on the screen. This flow helps components stay simple and reusable by receiving data from outside.