The significance of agile software development in project management lies in its iterative and flexible approach to software creation. Agile emphasizes collaboration, customer feedback, and rapid delivery, allowing teams to adapt quickly to changing requirements. This methodology fosters a culture of continuous improvement and encourages team members to be proactive in problem-solving. By breaking projects into manageable sprints, agile development enhances visibility and accountability, leading to better risk management and more timely project completions. Consequently, agile practices can improve both team morale and product quality.