Stable Diffusion is a powerful image generation model that requires fine-tuning to achieve specific results. Fine-tuning involves training the model on a custom dataset, which can be done by adjusting the model's parameters and using a base configuration file. The process involves creating a dataset, loading the original model weights, setting up the code and environment, training the model, and logging the results. The fine-tuned model can then be used to generate images based on text prompts. This example demonstrates how to fine-tune Stable Diffusion on a Pokémon dataset using a custom configuration file and a fork of the original training code.