Steric stabilization works through the adsorption of polymer chains or surfactants onto the nanoparticle surface. These adsorbed molecules create a layer around each particle. When two nanoparticles approach each other, the layers overlap, causing an increase in osmotic pressure and reduction in entropy. This leads to a repulsive force that keeps the particles apart. The effectiveness of steric stabilization depends on several factors, including the length and density of the adsorbed molecules.