'Server-side scripting' enables dynamic content generation in web development by executing scripts on the server before delivering HTML content to users' browsers. This approach allows developers to create interactive and personalized experiences based on user interactions and database queries. Server-side scripting can handle complex operations, such as processing forms, managing sessions, and retrieving data from databases. Common languages for server-side scripting include PHP, Node.js, and Ruby. By offloading processing to the server, it reduces the workload on the client's browser, enabling faster load times and enhanced performance for web applications.