How can PHP variables be effectively used in template files for dynamic content?

When working with template files for dynamic content in PHP, variables can be effectively used to pass data from the backend to the frontend. This allows for the dynamic display of content based on the values of these variables. To achieve this, simply assign the data to PHP variables in the backend logic and then echo these variables within the template file where the dynamic content is to be displayed.

// Backend logic
$dynamic_content = "Hello, World!";

// Template file
echo $dynamic_content;