In Svelte, components can send events to their parents using createEventDispatcher. First, the child component creates a dispatcher function. When an action happens, the child calls dispatch with an event name and optional data. The parent listens for this event by adding on:eventName to the child component tag. When the event fires, the parent runs its handler and can update its state or UI. This flow allows child components to communicate upwards without direct references. The event name must match between dispatch and the parent's listener. This example shows a child sending a 'message' event with text data, and the parent updating its display when it receives it.