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I have been using blender for a while .So I was wondering what indirect lighting in EEVEE was .Also I noticed that I can see the light produced by a lamp in rendered view without even baking it.What does baking indirect lighting do?.It is better to understand things and use it .I guess it has something to do with how eevee works.How is it different from cycles?

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It doesn't have anything to do with how eevee works, indirect lightning is referred to be as a lighting which doesn't directly fall on the camera and is reflected from some other surface. Eevee only approximates it and you get much more realistic and better results if you bake it, you can even limit the area for which it is calculated by using a light probe and then selecting bake all probes under eevee render settings.

Here is blender's official documentation about the topic:

https://docs.blender.org/manual/en/latest/render/eevee/render_settings/indirect_lighting.html

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  • $\begingroup$ Thanks...Can you also explain what makes it different from cycles? $\endgroup$
    – Nxdhin
    Jul 15, 2020 at 6:07
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    $\begingroup$ eevee is more like a game engine which just approximates all the lightning and then displays it on the camera whereas cycles is pretty accurate and uses an algorithm k/a path tracing which calculates each light falling on camera and their bounces as per chosen by the user thus, giving much more realistic results. In short the difference is in getting results more towards the realistic side of rendering. $\endgroup$
    – A D
    Jul 15, 2020 at 15:03

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