The significance of an iterative development process in software engineering lies in its focus on continuous improvement and adaptation. This approach involves repeated cycles of development, allowing teams to review and refine their work based on user feedback and testing. By breaking projects into smaller, manageable iterations, teams can address issues promptly and adjust features to meet evolving user needs. This flexibility minimizes the risk of delivering a flawed final product, enhances collaboration, and encourages innovation. Iterative processes, such as Agile and Scrum, are increasingly adopted in software development for their effectiveness in delivering high-quality software.