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The concept of overlays is that whenever a process is running it will not use the complete program at the same time, it will use only some part of it. Then overlay concept says that whatever part you required, you load it and once the part is done, then you just unload it, which means just pull it back and get the new part you required and run it. Formally, “The process of transferring a block of program code or other data into internal memory, replacing what is already stored”.