Dijkstra’s algorithm can be used to determine the shortest path from one node in a graph to every other node within the same graph data structure, provided that the nodes are reachable from the starting node.
This algorithm will continue to run until all of the reachable vertices in a graph have been visited, which means that we could run Dijkstra’s algorithm, find the shortest path between any two reachable nodes, and then save the results somewhere. Once we run Dijkstra’s algorithm just once, we can look up our results from our algorithm again and again — without having to actually run the algorithm itself! The only time we’d ever need to re-run Dijkstra’s algorithm is if something about our graph data structure changed, in which case we’d end up re-running the algorithm to ensure that we still have the most up-to-date shortest paths for our particular data structure.

Explanation – Shortest Path using Dijkstra’s Algorithm

The idea of the algorithm is very simple.
• It maintains a list of unvisited vertices.
• It chooses a vertex (the source) and assigns a maximum possible cost (i.e. infinity) to every other vertex.
• The cost of the source remains zero as it actually takes nothing to reach from the source vertex to itself.
• In every subsequent step of the algorithm it tries to improve(minimize) the cost for each vertex. Here the cost can be distance, money or time taken to reach that vertex from the source vertex. The minimization of cost is a multi-step process.
1. For each unvisited neighbor (vertex 2, vertex 3, vertex 4) of the current vertex (vertex 1) calculate the new cost from the vertex (vertex 1).
2. For e.g. the new cost of vertex 2 is calculated as the minimum of the two ( (existing cost of vertex 2) or (sum of cost of vertex 1 + the cost of edge from vertex 1 to vertex 2) )
• When all the neighbors of the current node are considered, it marks the current node as visited and is removed from the unvisited list.
• Select a vertex from the list of unvisited nodes (which has the smallest cost) and repeat step 4.
• At the end there will be no possibilities to improve it further and then the algorithm ends
For demonstration we will consider the below graph:

Step Wise Execution
Step 1:

Mark Vertex 1 as the source vertex. Assign a cost zero to Vertex 1 and (infinite to all other vertices). The state is as follows:
Step 2:

For each of the unvisited neighbors (Vertex 2, Vertex 3 and Vertex 4) calculate the minimum cost as min(current cost of vertex under consideration, sum of cost of vertex 1 and connecting edge). Mark Vertex 1 as visited , in the diagram we border it black. The new state would be as follows:
Step 3:

Choose the unvisited vertex with minimum cost (vertex 4) and consider all its unvisited neighbors (Vertex 5 and Vertex 6) and calculate the minimum cost for both of them. The state is as follows:
Step 4:

Choose the unvisited vertex with minimum cost (vertex 2 or vertex 5, here we choose vertex 2) and consider all its unvisited neighbors (Vertex 3 and Vertex 5) and calculate the minimum cost for both of them. Now, the current cost of Vertex 3 is [4] and the sum of (cost of Vertex 2 + cost of edge (2,3) ) is 3 + 4 = [7]. Minimum of 4, 7 is 4. Hence the cost of vertex 3 won’t change. By the same argument the cost of vertex 5 will not change. We just mark the vertex 2 as visited, all the costs remain same. The state is as follows:
Step 5:

Choose the unvisited vertex with minimum cost (vertex 5) and consider all its unvisited neighbors (Vertex 3 and Vertex 6) and calculate the minimum cost for both of them. Now, the current cost of Vertex 3 is [4] and the sum of (cost of Vertex 5 + cost of edge (5,3) ) is 3 + 6 = [9]. Minimum of 4, 9 is 4. Hence the cost of vertex 3 won’t change. Now, the current cost of Vertex 6 is [6] and the sum of (cost of Vertex 5 + cost of edge (3,6) ) is 3 + 2 = [5]. Minimum of 6, 5 is 45. Hence the cost of vertex 6 changes to 5. The state is as follows:
Step 6:

Choose the unvisited vertex with minimum cost (vertex 3) and consider all its unvisited neighbors (none). So mark it visited. The state is as follows:
Step 7:

Choose the unvisited vertex with minimum cost (vertex 6) and consider all its unvisited neighbors (none). So mark it visited. The state is as follows:

Now there is no unvisited vertex left and the execution ends. At the end we know the shortest paths for all the vertices from the source vertex 1. Even if we know the shortest path length, we do not know the exact list of vertices which contributes to the shortest path until we maintain them separately or the data structure supports it.
Analysis of the algorithm

The outer loop runs for |V| times
The inner loop runs for |V-1| times for a complete graph as each vertex has |V-1| edges.
Also, for each iteration of the inner loop we do an extractMin and a reduceKey operation for the vertex.
Hence the total running time has an upper bound of O(|V| * |V-1|). This is the upper bound, O(|V|2)