BBC News reporters are in the Manhattan courtroom covering the historic first criminal trial of a former US president. You'll find their updates and analysis on the BBC news website and app, and across TV, radio and podcasts.
Ms Daniels was allowed to walk jurors through some of her alleged encounter with Mr Trump inside his Lake Tahoe hotel suite in 2006.
Mr Trump was wearing silk pyjamas, she said, and asked her several "business-like" questions about her family, her upbringing and her work in the adult film industry.
At one point, he compared Ms Daniels to his daughter Ivanka, Ms Daniels said, saying that people underestimated both women because they were beautiful.
Ms Daniels also explained how the hush-money deal came to be, saying she first became interested in selling her story once she heard someone else was planning to.
"I'd rather make the money than someone making the money off of me," she said.
By 2016, after Mr Trump had launched his campaign for president, Ms Daniels learned Mr Trump and his lawyer, Michael Cohen, wanted to buy her story. The deal would be a win-win, Ms Daniels testified, because she did not want her then-partner to find out about her alleged encounter with Mr Trump.
But Ms Daniels claimed she was not particularly motivated by the money, saying on the stand she "didn't care" about the sum she was eventually paid to her by Mr Cohen.
And Ms Daniels also laid out some of the specifics of the alleged deal, saying she would be forced to pay $1 million every time she violated the agreement and spoke out about her experience with Mr Trump.
Most of what Ms Daniels' shared on Tuesday is not new information, it's been shared by Ms Daniels in a number of interviews and in her memoir. But her story carries some added weight now, told face to face with Mr Trump as part of the unprecedented criminal charges brought against him.