Page Factory in Selenium is an enhanced Page Object Model (POM) that optimizes the process of locating and initializing web elements for automation testing. It simplifies the use of Page Objects through the PageFactory class, which supports the @FindBy annotation to locate elements and the initElements method for initialization. This design pattern improves maintainability and reusability of test scripts by abstracting user interactions from core test logic, ensuring minimal changes are needed when the UI is updated. The tutorial provides a comprehensive guide on implementing Page Factory in Selenium, including differences from standard POM, the benefits of lazy initialization, and a practical demonstration using a Java-based TestNG framework for automating a signup process on LambdaTest. The approach demonstrates how Page Factory supports agile development by making test suites more robust and adaptable to project changes.