Servlets are Java programs that extend the functionality of web servers. Servlets offer advantages over CGI like improved performance since they execute within the server's memory space rather than as separate processes. The lifecycle of a servlet involves initialization, processing requests, and destruction. Tomcat is a popular open source web server that supports servlets. It provides APIs and handles loading, executing, and unloading servlets in response to HTTP requests. Servlets can handle GET and POST requests, with GET parameters appearing in the URL and POST parameters in the request body.