Dramatic irony occurs when the audience knows more about a situation than the characters in a story, creating a contrast between the character's understanding and the reality of the situation.
A classic example of dramatic irony can be found in Shakespeare's play "Romeo and Juliet." In the final act, Juliet takes a potion that makes her appear dead, planning to be reunited with Romeo. However, Romeo, unaware of her plan and believing she is truly dead, takes his own life. The audience knows that Juliet is alive, but the characters do not, heightening the tragedy of the situation. This irony deepens the emotional impact of the story, as viewers foresee the impending doom that the characters are obliviously marching toward.