Java 7 introduced several new features including underscores in numeric literals to improve readability, support for strings in switch statements, automatic resource management using try-with-resources to simplify closing resources, and multi-catch exceptions to handle multiple exception types in one catch block. Java 7 also improved the java.nio package to simplify working with files and directories using new helper types and methods for tasks like watching a directory for changes and mapping between java.io.File and java.nio.File objects.