The Dynamic Background plugin enhances the visual experience in Obsidian by enabling users to add dynamic effects and static wallpapers to their workspace. It supports a variety of animated effects such as Matrix/Digital Rain, Snow, Rain, and Star Sky for dark themes, and Random Circle and Wave effects for light themes. Users can also customize the background with static wallpapers, adjust blur levels, and integrate dynamic visuals for a personalized touch. The plugin allows easy switching between effects and wallpapers, ensuring compatibility with Obsidian's base theme settings.