Hibernate is an object-relational mapping tool that allows developers to work with relational data (like SQL databases) using object-oriented programming languages like Java. It eliminates manual data handling code by directly mapping Java objects to database tables. This reduces development time and effort. Hibernate configuration involves setting up XML mapping files that describe how Java classes and their fields are mapped to database tables and columns. It provides a simpler object-oriented approach for handling data persistence tasks versus direct SQL/JDBC coding.