DNA replicates through a process called semiconservative replication, where each parental DNA strand serves as a template to produce two identical daughter double helices, each with one parental and one new strand. The Meselson-Stahl experiment demonstrated this by growing E. coli in heavy nitrogen, then transferring to light nitrogen and analyzing DNA density over generations, finding bands matching semiconservative replication but not other models like conservative or dispersive replication.