The phenomenon that explains why we see different colors in the rainbow is known as dispersion. When sunlight passes through rain droplets, it is refracted, or bent, which causes the light to spread out into its constituent colors: red, orange, yellow, green, blue, indigo, and violet. This refraction occurs because different wavelengths of light are bent at different angles. The resulting spectrum of colors is commonly observed as a rainbow after a rain shower, illustrating the principles of light behavior.