Exception handling in Java provides a robust way to handle errors and exceptions that occur during program execution. The try-catch block allows code to be wrapped in a try block to protect it, while catch blocks handle any exceptions. Multiple catch blocks can be used to handle different exception types. The throw keyword is used to manually throw an exception, while throws is used to indicate unhandled exceptions in a method signature. Finally, the finally block is used for cleanup and always executes regardless of exceptions.