Waterfall and Agile each have distinct advantages and limitations that make them suited to different situations. Waterfall offers clear structure and thorough documentation, making it useful for projects with well-defined, stable requirements and fixed budgets. Industries like construction or manufacturing, where physical components and sequential dependencies exist, often find Waterfall's predictability helpful. However, it struggles with adaptation when requirements change, carries high risk if early assumptions are wrong, and delays testing until late stages. Agile excels in its adaptability to change, early delivery of value, and regular stakeholder involvement. It particularly suits software and digital products where user needs change rapidly.

The frequent feedback helps teams find and solve problems faster. However, Agile can make cost and timeline predictions harder, requires good communication, and may not fit well in environments where stakeholders can't participate regularly or where heavy documentation is required. The best approach often depends on the specific project context, organizational constraints, and the nature of the work itself.