Java's exception handling mechanism involves the use of the exception table within the Java Virtual Machine (JVM).The exception table in the compiled .class file defines bytecode ranges, target instructions, and exception types for error handling.Exception handling in Java involves stack unwinding where the JVM walks up the call stack to find matching exception handlers.The finally block in Java is duplicated at each possible exit point from try or catch blocks to ensure its execution.Nested try-catch-finally blocks in Java have separate exception tables for each block and manage errors independently.Java distinguishes between checked and unchecked exceptions, enforcing handling rules at compile time for checked exceptions.Unchecked exceptions, such as RuntimeExceptions, do not require explicit handling and can be thrown at any point in the code.Rethrowing exceptions in Java can involve wrapping a checked exception as an unchecked one to avoid method signature clutter.Understanding how the JVM handles exceptions and the impact on compile-time checks aids in designing robust and efficient code.Exceptions in Java involve creating detailed stack traces during runtime, impacting performance and compiler optimizations.