Enterprise Java Beans (EJBs) allow developers to create reusable components (beans) that can be assembled into applications. EJBs provide services like transactions and security so developers can focus on business logic. Beans run under an EJB container that handles method calls and inserts services. There are three types of beans: entity beans represent database rows, session beans represent processes, and message-driven beans consume JMS messages. Session beans can be stateless, with one bean handling multiple clients concurrently without state, or stateful, where each client is assigned its own bean that maintains state.