Newton's Cradle operates on the principle of conservation of momentum and energy, where the number of balls lifted and released from one side determines the number of balls that will be pushed from the opposite side. Each collision occurs independently, meaning the balls do not "know" how many are behind them, and the energy transfer happens sequentially. The behavior is influenced by the equal mass of the balls, which ensures that when one ball strikes another, they exchange momentum without increasing speed or distance disproportionately. The discussion also touches on the effects of varying ball sizes and masses, suggesting that different configurations could yield different results. Overall, the fundamental mechanics of the cradle illustrate the principles of impulse and momentum in action.