Seam is a web framework built on top of EJB3 that integrates Java Server Faces and Wicked. It relies heavily on dependency injection and builds on other tools like EJB3, Hibernate, and Log4J. Session beans act as controllers in MVC and process user input and actions, while entity beans represent data stored in databases using Hibernate and JPA. Seam uses contexts and scopes like event, page, conversation, and session to manage buckets of variables with different lifecycles, injecting and extracting them using annotations.