Java logging is an essential tool for understanding system performance and diagnosing failures by recording events for auditing and debugging purposes. Effective Java logging involves setting appropriate log severities, ensuring clarity for various readers, tracking system communications, and adding metadata to logs for enhanced problem-solving. Utilizing logging APIs like Log4J and Logback can standardize and enrich logs, while avoiding overly large or redundant logs is crucial for performance. Proper exception handling and using unique IDs to track events can further streamline the logging process, making it easier to monitor and debug systems. By implementing these practices, developers can create a robust logging strategy that supports system maintainability and stability.