Optimization is critical in competitive programming as it ensures solutions meet strict time and memory constraints, which is often necessary to get full points. Optimizing code involves selecting the right algorithms, using data structures that enhance speed, and reducing redundant calculations. For example, using memoization in dynamic programming avoids recalculating solutions to subproblems, saving significant time. Understanding when and where to implement optimizations, such as early stopping conditions in loops or pruning unnecessary branches in recursion, also helps. In addition to algorithmic efficiency, optimizing space usage by avoiding large unnecessary data structures or limiting recursion depth prevents memory limit exceeded errors. Practicing with optimized solutions prepares you to tackle challenging problems while meeting contest requirements, and honing these skills makes you an effective, competitive programmer.