Scenario testing involves using real-world scenarios rather than test cases to test software. Testers think like end users to determine scenarios that could be performed in the software. Scenarios are created with input from clients, stakeholders, and developers. Scenario testing verifies full functionality and ensures business processes and flows match requirements. It also tests common use cases. System scenario tests focus on realistic user activities covering system components, while use case scenarios provide step-by-step procedures for intended user roles interacting with the system.