Conditional bean creation in Spring Boot means the framework decides whether to create a bean based on a condition. For example, using @ConditionalOnProperty, Spring checks if a property is set to a specific value. If true, it creates the bean; if false, it skips it. This happens during application startup. This approach helps to enable or disable features easily without changing code. Each bean can have its own condition, and Spring evaluates them one by one. This makes your application flexible and configurable.