In Svelte, components can have default prop values by assigning them during export, like export let name = 'Guest'. When the component is used, if a parent passes a value for 'name', that value is used. If not, the default 'Guest' is used instead. This ensures the component always has a value to display. The execution table shows three steps: when 'Alice' is passed, the component renders 'Hello, Alice!'. When no prop is passed, it renders 'Hello, Guest!'. The variable tracker confirms the 'name' variable changes accordingly. This pattern helps avoid undefined props and makes components easier to use.