Packages and interfaces are two of Java's most innovative features. Packages are used to group related classes and avoid naming conflicts by providing a mechanism to partition the class namespace into more manageable chunks. Packages also provide access control, with protected and default members having package-level access. To define a package, the package statement is included at the top of a Java file specifying the package name. Import statements are used to make classes in other packages visible. Packages can be built-in, from the Java API, or user-defined.