Technology enhances user interaction in web applications primarily through interactive elements and dynamic content. Tools like JavaScript, AJAX, and various front-end frameworks allow for real-time updates, ensuring that users engage with the application seamlessly. Features such as responsive design, user-friendly navigation, and personalized content also contribute to improved interaction. Additionally, technologies like chatbots and progressive web apps can further enhance user experience by providing immediate feedback and access to information on demand, fostering a more engaging environment.