Thin film interference occurs when light waves reflect off the top and bottom surfaces of a thin film, causing constructive or destructive interference. This interference results in colorful patterns that depend on the film thickness and material. Constructive interference occurs when the film thickness is an integer multiple of half the wavelength, while destructive interference happens when the thickness is an integer plus half a wavelength. The phase of reflected light also shifts depending on whether the film's refractive index is smaller or larger than the medium below.