Morphing involves transitioning between images by partitioning them into regions based on feature points like eyes and mouths. Face morphing algorithms find these points to warp and cross-dissolve images, transforming one face into another. Hollywood and Disney use face morphing for special effects and animation by speeding up transitions between character expressions or individuals. The process involves pre-processing, feature finding, image partitioning, coordinate transformations, and cross-dissolving regions to blend facial features between images.