Step 1 of photosynthesis, requires light. Occurs in the thylakoid membrane, Inputs: Light energy, water (H₂O), NADP⁺, ADP. Outputs: ATP, NADPH, and oxygen (O₂) as a byproduct (from water splitting); Photolysis: Water is split by Photosystem II to release electrons, protons (H⁺), and oxygen.