The process by which water vapor transforms into liquid water is called condensation. This phenomenon occurs when water vapor cools and loses energy, leading to the formation of liquid droplets. Condensation is essential in the water cycle and occurs under various conditions, such as when warm, moist air rises, cools, and forms clouds. It can be observed in everyday life, such as when dew forms on grass early in the morning or when water droplets appear on a cold beverage. Condensation is crucial for cloud formation, precipitation, and maintaining the balance of water in the environment.