Nashorn is the JavaScript engine that replaced Rhino in Java 8. It provides better performance than Rhino by compiling JavaScript to Java bytecode rather than interpreting it. Nashorn allows embedding JavaScript in Java applications and developing standalone JavaScript apps. It features interoperability between Java and JavaScript, is embeddable in Java without external libraries, and compatible with ECMAScript 5.1 specifications. However, it only supports features up to ECMAScript 5.1 and lacks a browser plug-in API or DOM/CSS support.