The term agile methodology in project management refers to an iterative approach that promotes flexibility and collaboration. It emphasizes delivering work in small, manageable increments, known as sprints. Teams regularly review progress and adapt plans based on feedback, allowing for rapid changes in response to customer needs. Agile methodologies prioritize individuals and interactions over processes and tools, fostering a collaborative environment. Popular frameworks within this methodology include Scrum and Kanban, which help in maintaining focus on delivering customer value efficiently.