In React, passing data from parent to child components often requires passing props through many layers, called props drilling. This can be tedious and error-prone. React Context solves this by allowing components to share data directly without passing props at every level. We create a context with React.createContext and wrap components with a Provider that sets the value. Nested components use useContext to read the value directly. This example shows a theme value 'dark' passed via context to a Button component nested inside Toolbar. The Button reads the theme using useContext and renders it. This avoids passing the theme prop through Toolbar. The execution table traces each step: App sets the context, Toolbar renders, Button reads context and renders the button with the theme text. The variable tracker shows the theme variable changes from undefined to 'dark' inside Button. Key moments clarify why context is needed and how useContext works. The quiz tests understanding of context value at different steps and what happens if Provider is removed. Overall, context simplifies sharing data in React apps by avoiding props drilling.