@angular/platform-browser-dynamic enables dynamic compilation of Angular components and modules within the browser. It's essential for Just-In-Time (JIT) compilation, allowing applications to compile templates at runtime in the browser. This package is primarily used during development and debugging, offering features like dynamic template loading and component creation, which improve developer productivity. While powerful, JIT compilation significantly impacts initial load time in production environments, so Ahead-of-Time (AOT) compilation with @angular/compiler-cli is recommended for deployment.