When a program dynamically loads a dynamic link library (DLL) file in the Windows system, the system follows a specific search order to locate the DLL. Here’s the order in which it searches:

1. The directory from which the application is launched.
2. The folder C:\Windows\System32.
3. The folder C:\Windows\System.
4. The folder C:\Windows.
5. The current working directory.
6. Directories listed in the system’s PATH environment variable.
7. Directories listed in the user’s PATH environment variable.

Keep in mind that this search order ensures that the system finds the appropriate DLL for the application, even if multiple versions of the same DLL exist in different locations within the operating system.