This chapter discusses classes and objects in Java. It explains that object-oriented programming centers on creating objects that contain both data fields and methods. A class defines the attributes and behaviors for a particular kind of object, acting as a blueprint. Individual objects are created from a class and are called instances of that class. The chapter demonstrates how to define a Rectangle class with fields for length and width, and methods to set, get, and calculate area. It also covers concepts like encapsulation, access modifiers, and the Unified Modeling Language (UML) for visually depicting classes.