The advantages of using agile methodology in software development include enhanced flexibility, continuous improvement, and increased customer satisfaction. Agile promotes iterative development, allowing teams to respond quickly to changes and incorporate feedback throughout the development process. Teams work in short cycles, known as sprints, which encourages collaboration and rapid prototyping. This approach helps in identifying potential issues early, reduces project risks, and aligns the final product more closely with user requirements. Ultimately, agile fosters a culture of innovation and adaptability, leading to higher quality software delivery.