Dynamic binding in Java, also known as late binding, allows the JVM to determine which method to call at runtime rather than compile time. This mechanism is crucial for implementing polymorphism in object-oriented programming. Key concepts include: - Runtime method resolution based on the actual object type - Supports overriding methods in subclasses - Enhances flexibility and maintainability of code - Example: Calling overridden methods through parent class references Dynamic binding ensures that the correct method is executed even when objects are referred to by a parent class type, enabling powerful polymorphic behavior.