This visual trace shows how Unity creates a new object from a prefab during runtime. First, the prefab is loaded. Then, Instantiate is called to make a new copy. The new object is active immediately. Next, its position and rotation are set to place it correctly in the scene. Finally, the object appears correctly placed and visible. The prefab itself does not change. Variables track the prefab and new object states step-by-step. Key moments clarify why the object appears only after setup and that the prefab remains unchanged. Quiz questions test understanding of object state at each step and effects of skipping steps.