The HAVING clause is used in SQL to filter groups after the data has been grouped and aggregate functions have been calculated. First, the database reads all rows from the table. Then it groups rows by the specified columns. Next, aggregate functions like COUNT calculate values for each group. After that, the HAVING clause filters these groups based on the condition provided. Only groups that meet the condition are included in the final output. For example, if we group employees by department and count them, HAVING COUNT(*) > 2 will only show departments with more than two employees. This differs from WHERE, which filters rows before grouping. If no groups meet the HAVING condition, the result is empty. This step-by-step process helps understand how HAVING works to filter grouped data.