In this tutorial, a spatial audio functionality is implemented in a 3D Unity example using Agora's real-time engagement (RTE) technology. The audio modulates based on the distance between players and pans between left and right speakers depending on the player's orientation while talking. The project uses Agora for RTE spatial audio chat and PUN2 for networking. Key points include setting up a valid Agora account, updating video profile settings, enabling sound position indication, adding a networkedUID variable, creating an UpdateNetworkedPlayerUID function, and setting up remote player lists and spatial audio setup. The tutorial also provides optimization suggestions to improve performance.