State machines are used in embedded systems to organize how the system behaves in different situations. The system stays in one state at a time, like IDLE or RUNNING. It checks inputs or events to decide if it should change to another state. This makes the code easier to understand and maintain compared to many if-else statements. The example code shows a loop that checks the current state and runs actions for that state. The execution table traces how the state changes step by step based on inputs like button presses or errors. If no input changes the state, the system stays in the same state, waiting. This approach helps embedded devices be reliable and clear in their behavior.