File with a .CLASS extension contains a compiled Java source code in binary form, it is executable within the Java virtual machine environment – JVM. CLASS files are created as a result of using the javac compiler on a file with a .JAVA extension. The may originate from different versions of Java environment (JRE), therefore, they may not be compatible with a specific version of JVM, but still they can be run. JRE and JVM are sometimes used interchangeably, as description of environment in which Java files are executed. Currently, the Oracle Corporation develops the environment, which was acquired by Sun Microsystems.

Some programming environments which support Java enable verification of the source code and compiling it on the fly, while writing programs. It helps to prevent errors within a project and enables its faster building and running. CLASS files are usually packed into JAR files, which enable gathering files from a project or a library in one place, defined with the $CLASSPATH environment variable.