The process when moisture condenses and forms small droplets in the atmosphere is called cloud formation. This phenomenon occurs when warm, moist air rises and cools, causing water vapor to condense into tiny droplets around particles like dust or pollen. When these droplets accumulate, they create clouds. This process is a crucial part of the water cycle, playing a significant role in precipitation patterns and weather systems. Understanding cloud formation helps meteorologists make accurate weather forecasts and further comprehend climate dynamics.