Testbenches are needed in VHDL to verify that the design works correctly before it is used in hardware. The process starts by writing the design and then creating a testbench that applies inputs to the design signals. The simulation runs these inputs through the design and observes the outputs. By checking if the outputs match expected results, we confirm the design's correctness. If errors appear, the design is fixed and tested again. This cycle ensures reliable hardware behavior. The execution table shows step-by-step how inputs change and outputs respond during simulation, highlighting why testbenches are essential.