OSGi is a module system and service platform for Java that provides a dynamic and flexible environment for developers. It allows software to be organized into independent bundles that can be updated without restarting the entire system. Bundles define their dependencies and interfaces, and services allow bundles to collaborate by providing and consuming functionality. The OSGi framework handles loading, dependency management, and lifecycle of bundles, and provides a service registry for bundles to publish and discover services. OSGi addresses the need for a modular architecture in large Java applications and enables continuous software evolution.