Description: Dynamic reference in AWS CloudFormation is a mechanism that allows referencing values that are resolved at runtime, rather than being static. This means that when using dynamic references, the values can change based on the context in which the CloudFormation template is executed. A common example of dynamic reference is the use of parameters from AWS Systems Manager, which allows users to access securely stored configurations and secrets. This feature is particularly useful for maintaining flexibility and security in cloud resource management, as it enables developers and system administrators to integrate configurations that may vary across different environments, such as development, testing, and production. Dynamic references also help avoid exposing sensitive information in CloudFormation templates, as values are resolved at execution time and are not stored directly in the template code. In summary, dynamic references are a powerful tool for cloud configuration management, providing an efficient and secure way to handle values that may change over time or depending on the execution environment.