Transgenic animals are created by inserting foreign genes into their genomes, allowing the traits to be passed to future generations, with applications in agriculture, medicine, and industry. Various methods, such as microinjection and stem cell manipulation, are employed to introduce these genes into the animals, leading to the development of species with desirable traits like increased growth, disease resistance, and specialized protein production. While transgenic technology holds significant promise, it also raises ethical and environmental concerns that need to be addressed.