Packages in Java are nothing more than a way to organize the files into different directories according to the functionality, category, etc. Just as files in one directory will have different functionality from those of another directory, files in one package will have a different functionality from the files in a different package. For example, files in java.io package contain functionality related to I/O, but the files in java.net package contain functionality related to a network. Package is a collection of classes that avoids name space collision. For example, if we have a class named “Vector” this name would clash with the “Vector” class present in JDK (Java Development Kit), but in real life this never happens as JDK “Vector” class is present in java.util package which is a separate package. So we can create a Vector class simply or we can put it in some other package, but we cannot create multiple classes having the same name in a single package. However, we can create a class hierarchy and keep them in a package. Packages can also be considered as a container for classes.