Encapsulation provides benefits such as reducing complexity, ensuring structural changes remain local, and allowing for validation and data binding. It works by hiding implementation details and wrapping code and data together. Objects use private fields and public getters/setters for access. Access modifiers like private, protected, and public control visibility. Validation occurs in setters through exceptions. Mutable objects can be modified after creation while immutable objects cannot. The final keyword prevents inheritance, method overriding, or variable reassignment.