Intersection Observer provides an efficient way to implement iframe lazy loading by: 1) Only loading iframe content when it comes into view, reducing initial page load time and memory usage, 2) Using rootMargin to preload iframes before they're visible, creating a smoother experience, 3) Unobserving iframes after loading to optimize performance, 4) Managing resources efficiently by preventing unnecessary iframe loads. The code demonstrates this pattern using data-src attributes to store the actual source URL until loading is needed.