Constructors in Java are special methods used to initialize objects. They are called when an object is created using the new keyword. There are two types of constructors: default constructors and parameterized constructors. A default constructor is created automatically if no other constructor is defined, while a parameterized constructor allows values to be passed during object creation to initialize the object's fields. Constructors must have the same name as the class, cannot have a return type, and cannot be abstract, static, or final. They are used to set initial values for newly created objects.