The software development methodology that emphasizes iterative progress through small increments is known as Agile. Agile promotes flexibility and collaboration, allowing teams to respond quickly to changes and feedback during the development process. Instead of a linear approach, Agile breaks projects into manageable segments called sprints, enabling continuous improvement and frequent reassessment. This methodology encourages active stakeholder involvement and prioritizes delivering functional features to users at the end of each iteration, enhancing adaptability and increasing overall project success rates.