A Java package is a collection of related classes and interfaces that provides namespace management. Packages support hierarchical organization and are used to organize large programs into logical units. Classes within a package are uniquely named to avoid collisions with classes in other packages. A package is named with a series of identifiers separated by periods, and all files within a package must be located in a subdirectory matching the package name. Packages and classes can be imported to provide access without needing to specify the full package name. Creating an instance of a class produces an object that can access the class's methods and properties.