How can PHP be used to dynamically generate and display image files in a webpage?

To dynamically generate and display image files in a webpage using PHP, you can use the GD library which allows you to create and manipulate images on the fly. You can generate an image using PHP functions, save it to a file or output it directly to the browser, and then display it on a webpage using an <img> tag with the appropriate source.

&lt;?php
// Create a blank image with specified dimensions
$width = 200;
$height = 200;
$image = imagecreatetruecolor($width, $height);

// Set the background color
$bg_color = imagecolorallocate($image, 255, 255, 255);
imagefill($image, 0, 0, $bg_color);

// Set the text color
$text_color = imagecolorallocate($image, 0, 0, 0);

// Add text to the image
$text = &quot;Hello, World!&quot;;
imagettftext($image, 20, 0, 50, 100, $text_color, &#039;arial.ttf&#039;, $text);

// Output the image to the browser
header(&#039;Content-Type: image/png&#039;);
imagepng($image);

// Free up memory
imagedestroy($image);
?&gt;