Java Event Listeners in Selenium WebDriver are powerful tools that enhance automation testing by allowing testers to track and log various events during test execution. These listeners, defined through interfaces in Selenium, listen to actions such as data entry, button clicks, page navigation, and exceptions, providing detailed logs that aid in debugging and reporting. Implementing event listeners in Selenium involves using the WebDriverEventListener interface and the EventFiringWebDriver class to capture over 20 types of events, such as before and after page navigation or element interactions. The tutorial demonstrates setting up a Selenium automation testing script with Java Event Listeners, showcasing an example flow that includes navigating to a webpage, interacting with elements, and capturing events. This approach not only simplifies the logging process but also enhances the efficiency and reliability of automated tests, especially when integrated with tools like LambdaTest, which provides a cloud-based Selenium Grid for scalable and cross-browser testing.